172982111 e-marketing-of-religare-relationship-study-final

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A
PROJECT REPORT
ON
SUMMER TRAINING REPORT SUBMITTED TOWARDS THE
PARTIAL FULFILLMENT OF POST GRADUATE DEGREE IN
INTERNATIONAL BUSINESS
PORTFOLIO MANAGEMENT SERVICES AT RELIGARE
ENTERPRISE LIMITED

SUBMITTED BY:
MARK MARTIN
MBA-IB (2011-2013)
Roll No. : A1802011202
FACULTY GUIDE
Dr. S.K. PACHAURI
AMITY UNIVERSITY , UTTAR PRADESH

CERTIFICATE OF ORIGIN
This is to certify that Mr. VED PRAKASH TIWARI , a student of
Post Graduate Degree in MBA – International Business, Amity
International Business School, Noida has worked in RELIGARE ,
under the able guidance and supervision of Mr. VARUN GUPTA,
designation BRANCH MANAGER, Company RELIGARE
SECURITIES Ltd.The period for which he was on training was for
6 weeks, starting from 5TH
MAY to 25TH
JUNE.
This Summer Internship report has the requisite standard for the
partial fulfillment the Post Graduate Degree in International
Business.
To the best of our knowledge no part of this report has been
reproduced from any other report and the contents are based on
original research.
Signature Signature
(Faculty Guide) (Student)

ACKNOWLEDGEMENT
I express my sincere gratitude to my industry guide Mr
VARUN GUPTA, BRANCH MANAGER, RELIGARE
SECURITIES, for his/her able guidance, continuous
support and cooperation throughout my project, without
which the present work would not have been possible.
I would also like to thank the entire team of RELIGARE,
for the constant support and help in the successful
completion of my project.
Also, I am thankful to my faculty guide Prof./Mr./Ms. of my
institute, for his/her continued guidance and invaluable
encouragement.
Signature
(Student)

CONTENT
INTRODUCTION ....................................................................................1
COMPANY PROFILE............................................................................25
LITERATURE REVIEW.........................................................................41
RESEARCH METHODOLOGY.............................................................57
FINDING AND ANALYSIS....................................................................59
CONCLUSION......................................................................................71
RECOMMENDATION...........................................................................73
BIBLIOGRAPHY...................................................................................75
ANNEXURE – QUESTIONNAIRE........................................................76

SYNOPSIS
DETAILS OF THE STUDENT:
Name : MARK MARTIN
Batch : 2011 - 2013
Specialization : MARKETING
Section : G
Phone No : 9958223290
Email Id : m_martinark@yahoo.co.in
• DESIRED AREA: MARKETING
• TITLE OF THE THESIS:
E-MARKETING OF RELIGARE: RELATIONSHIP STUDY
PROBLEM DEFINITION /HYPOTHESIS /RESEARCH OBJECTIVES
This paper reviews the unique features of new communication media
and the way it have shifted the balance of bargaining power on the
market of Religare products. Through the wide range of theoretical and
empirical arguments the paper builds the logical bridge between the
new business requirements and the importance of developing
relationship marketing perspective. Major focus of this project will be
on these two parts
• To find out the awareness among the company about internet
marketing.
• To find willingness among consumers about making purchase on
internet
LITERATURE RELATED TO THE RESEARCH (IN BRIEF)

The E-commerce further leads to the emergence of the ''market space''
- a virtual world of information paralleling the real marketplace of goods
and services - enables marketers to manage content, context, and
infrastructure in new and different ways, thereby providing novel
sources of competitive advantage (Rayport & Sviokla, 1994). With
electronic marketing one can think for business across the globe that
was not possible earlier. Traditional way of market segmentation with
an internet audience may not be fruitful. In electronic marketing,
segmentation can be done effectively by considering two key
dimensions i.e. potential value of the segment to the particular market
sector and comparative attractiveness of the channel to the customer
(Hymas, 2001).
 SCOPE OF THE THESIS WORK
To support this logical chain the paper reviews the advantages of new
approach for Religare providers against transaction approach. Further
on, the paper discusses the way relationship marketing concept is
currently applied by Religare providers, especially in the recently
emerged electronic business area. The aim of this paper is to explore
the critical success requirements that shall be considered when
developing e-relationship marketing strategy.
 RESEARCH METHODOLOGY
SECONDARY DATA –
I will collect the Secondary data from following sources:-
• Newspaper – HT, TOI
• Magazine - Business world, The Times
• Website/Internet – Indian Banks website (Private and Public)
• Book – Course book/ Philip Kotler

• Notes- Professors Notes
PRIMARY DATA-
I will collect the data through structure questionnaire.
TOOL USED-
Excel sheet, pie chart, histogram
SAMPLING METHOD
Random sampling method
SAMPLE SIZE-
I will try to collect data from more than 60 customer/employee/advisors.
Target Audience-
Bank customer/employee/advisors.
 JUSTIFICATION FOR CHOOSING A PARTICULAR RESEARCH
PROPOSAL
These set of factors eventually decide the online usage behavior of the
website users. At this point of time the factors that influence a B2B website
are well established and future efforts should be directed towards explaining
the conceptual links between these factors and the actual website usage and
their collective influence on the dependent variable.
 SUMMER TRAINING REPORT (IN BRIEF)
Comparative study & Analysis of Auto Loan given by private sector
banks & nationalized banks. The objective of the project was to study
and compare the interest rate, documentation and other formalities
required in an Auto Loan. The study of the project was done in NCR
region.

INTRODUCTION
E-Business (electronic business) is, in its simplest form, the conduct of
business on the Internet. It is a more generic term than eCommerce because
it refers to not only buying and selling have already discovered how to use
the Internet successfully. Electronic-business Doing business online. The term
is often used synonymously with e-commerce, but e-business is more of an
umbrella term for having a presence on the Web. An e-business site may be
very comprehensive and offer more than just selling its products and services.
For example, it may feature a general search facility or the ability to track
shipments or have threaded discussions. In such cases, e-commerce is only
the order processing component of the site. E-Business or Electronic
Business is the administration of conducting business via the Internet. This
would include the buying and selling of goods and services, along with
providing technical or customer support through the Internet. E-Business is a
term often used in conjunction with e-commerce, but includes services in
addition to the sale of goods. E-business or Electronic business is the
extensive use of computers, communication technology, networking
technology and computerized data to perform business processes. In other
words, E-business is any system of suppliers, distributors, or customers that
use the Internet as the basis for their operations. It can range from using e-
mail to communicate with customers and/or conduct business to a web page
promoting a company, from a full e-commerce retail site to the integration of
procedures and processes using Internet based technology.
The transactional component of E-business is e-commerce. E-commerce can
be defined as the buying and selling of information, products and services via
the Internet. There are generally two types of e-commerce 1) B2C (Business
to Consumer) in which businesses sell to consumers or 2) B2B (Business to
Business) in which businesses sell their products or services to other
businesses. E-business has the potential to help you improve your business
processes through accelerating and enhancing customer service; increasing
sales by providing alternative sales and marketing channels; promoting
1

product, service, and company information; and, by reflecting a modern
image.
Electronic Business commonly referred to as "E-Business" or "E-Business",
may be defined as the utilization of information and communication
technologies (ICT) in support of all the activities of business. Commerce
constitutes the exchange of products and services between businesses,
groups and individuals and hence can be seen as one of the essential
activities of any business. Hence, electronic commerce or eCommerce
focuses on the use of ICT to enable the external activities and relationships of
the business with individuals, groups and other businesses
E-COMMERCE
(Electronic-COMMERCE) Doing business online, typically via the Web. It is
also called "e-business," "e-tailing" and "I-commerce." Although in most cases
e-commerce and e-business are synonymous, e-commerce implies that
goods and services can be purchased online, whereas e-business might be
used as more of an umbrella term for a total presence on the Web, which
would naturally include the e-commerce(shopping)component. E-commerce
may also refer to electronic data interchange (EDI), in which one company's
computer queries and transmits purchase orders to another company's
computer. In 1886, a telegraph operator was able to obtain a shipment of
watches that was refused by the local jeweler. Using the telegraph, he sold all
the watches to fellow operators and railroad employees. Within a few months,
he made enough money to quit his job and start his own store. The young
man's name was Richard Sears.
Electronic commerce is a flourishing concept that pertains to the process of
buying, selling and exchanging of commodities¡Xproducts, services and even
information¡Xthrough computer and telecommunication networks covering the
internet (Bushy, 2005). Electronic commerce may also be defined through
various perspectives. From the view of communications, electronic commerce
refers to the delivery or transfer of information on orders, purchases,
payments, products, and services over the telephone, computer systems, or
2

other electronic means. As a business concept, electronic commerce refers to
the utilization of technology with the objective of automating business
workflow and business transactions. From the point of view of service,
electronic commerce refers to a valuable tool that meets the objective of
business firms covering management and employees as......
In practice, e-business is more than just e-commerce. While e-business refers
to more strategic focus with an emphasis on the functions that occur using
electronic capabilities, e-commerce is a subset of an overall e-business
strategy. E-commerce seeks to add revenue streams using the World Wide
Web or the Internet to build and enhance relationships with clients and
partners and to improve efficiency using the Empty Vessel strategy. Often, e-
commerce involves the application of knowledge management systems. E-
business involves business processes spanning the entire value chain:
electronic purchasing and supply chain management, processing orders
electronically, handling customer service, and cooperating with business
partners. Special technical standards for e-business facilitate the exchange of
data between companies. E-business software solutions allow the integration
of intra and inter firm business processes. E-business can be conducted using
the Web, the Internet, intranets, extranets, or some combination of these.
The internet is one of the most important channels for increasing the
satisfaction of existing customers and acquiring new ones. With this
philosophy in mind, we at SRC.SI have designed a "financial portal" through
which a bank can provide a complete service to existing and potential
customers.
Through the portal a bank can easily and in an attractive way:
• present its services
• enable calculations to be made for informative purposes and to be
compared
• inform its customers of new developments
• provide a point of contact between portal users and the bank
3

The graphical appearance of the websites within the financial portal follows
the bank's corporate image, while the bank is able to adapt new content
quickly and independently with the help of the content management system.
E-BUSINESS MODELS
When organizations go online, they have to decide which e-business models
best suit their goals. A business model is defined as the organization of
product, service and information flows, and the source of revenues and
benefits for suppliers and customers. In the past two years, e-business seems
to have permeated every aspect of daily life. In just a short time, both
individuals and organizations have embraced Internet technologies to
enhance productivity, maximize convenience, and improve communications
globally. From banking to shopping to entertaining, the Internet has become
integral to daily activities. For example, just 23 years ago, most individuals
went into a financial institution and spoke with a human being to conduct
regular banking transactions. Ten years later, individuals began to embrace
the ATM machine, which made banking activities more convenient. Today,
millions of individuals rely on online banking services to complete a large
percentage of their transactions. The rapid growth and acceptance of
Internet technologies has led some to wonder why the e-business
phenomenon did not occur decades ago. The short answer is: it was not
possible. In the past, the necessary infrastructure did not exist to support e-
business. Most businesses ran large mainframe computers with proprietary
data formats. Even if it had been achievable to transfer data from these large
machines into homes, the home computer was not yet a commodity, so there
were few terminals outside of business to receive information. As PCs
became more popular, especially in the home, the ability to conduct e-
business was still restricted because of the infrastructure required to support
it, including backend customer and supplier interaction along with credit card
processing systems. To set up an e-business even eight years ago would
have required an individual organization to assume the burden of developing
the entire technology infrastructure, as well as its own business and marketing
strategies. Today, the challenge of e-business is integration. There are
industry-leading companies that have solved the difficult task of developing
4

individual Internet-based products and services that handle many of supplier
interactions. However, the ability to integrate these technologies and services
based on sound business and marketing strategies, operating on a real-time
As e-business continues to be fueled by both organizations and consumers
who have access to the Internet from their homes and offices, the excitement
grows and the potential for success increases. But explosive growth of the
Internet has also led to a growing number of integration challenges fore-
businessesof allsizes and types.
5

COMPANY PROFILE
Religare is a diversified financial services group of India offering a multitude of
investment options.
The diverse bouquet of financial services which Religare offers can be broadly
clubbed across three key verticals - Retail, Institutional and Wealth
spectrums. The services extend from asset management, Life Insurance,
wealth management to equity broking, commodity broking, investment
banking, lending services, private equity and venture capital. Religare has
also ventured into the alternative investments sphere through its holistic arts
initiative and Film fund. With a view to expand, diversify and introduce
offerings benchmarked against global best practices, Religare operates in the
life insurance space under 'Aegon Religare Life Insurance Company Limited'
and wealth management under the brand name 'Religare Macquarie Private
Wealth'
NAME
Religare is a Latin word that translates as 'to bind together'. This name has
been chosen to reflect the integrated nature of the financial services the
company offers.
SYMBOL
The Religare name is paired with the symbol of a four-leaf clover.
Traditionally, it is considered good fortune to find a four-leaf clover as there is
only one four-leaf clover for every 10,000 three-leaf clovers found.
For us, each leaf of the clover has a special meaning. It is a symbol of Hope.
Trust. Care. Good Fortune.
For the world, it is the symbol of Religare.
The first leaf of the clover represents Hope. The aspirations to
succeed. The dream of becoming. Of new possibilities. It is the
6

beginning of every step and the foundation on which a person reaches
for the stars.
The second leaf of the clover represents Trust. The ability to place
one’s own faith in another. To have a relationship as partners in a
team. To accomplish a given goal with the balance that brings
satisfaction to all, not in the binding, but in the bond that is built.
The third leaf of the clover represents Care. The secret ingredient that
is the cement in every relationship. The truth of feeling that underlines
sincerity and the triumph of diligence in every aspect. From it springs
true warmth of service and the ability to adapt to evolving
environments with consideration to all.
The fourth and final leaf of the clover represents Good Fortune.
Signifying that rare ability to meld opportunity and planning with
circumstance to generate those often looked for remunerative
moments of success.
Hope. Trust. Care. Good Fortune. All elements perfectly combine in
the emblematic and rare, four-leaf clover to visually symbolize the
values that bind together and form the core of the Religare vision.
Accent usage
The diacritical tilde mark ( ˜ ) over the letter A in the Religare typeface
indicates a palatal emphasis sound of the letter A.
1.2 Vision and mission
Vision - To build Religare as a globally trusted brand in the financial services
domain and present it as the ‘Investment Gateway of India'.
Mission - Providing complete financial care driven by the core values of
diligence and transparency
1.3 Group structure:
7

Religare Enterprises Limited
Religare Securities Limited
Equity Broking
Online Investment Portal
Portfolio Management Services
Depository Services
Religare Commodities Limited
Commodity Broking
Religare Capital Markets Limited
Investment Banking
Proposed Institutional Broking
Religare Realty Limited
In house Real Estate Management Company
Religare Hichens Harrison**
Corporate Broking
Institutional Broking
Derivatives Sales
Corporate Finance
Religare Finvest Limited
Lending and Distribution business
Proposed Custodial business
Religare Insurance Broking
Limited
Life Insurance
General Insurance
Reinsurance
Religare Arts Initiative Limited
Business of Art
Gallery launched - arts-i
Religare Venture Capital
Limited
Private Equity and Investment
Manager
Religare Asset Management*
* Religare Asset Management Company (P) Limited is a wholly owned subsidiary of
Religare Securities Limited (RSL), which in turn is a 100% subsidiary of Religare
Enterprises Limited.
** Religare Hichens, Harrison plc. (RHH) is a part of Religare Enterprises Limited
(REL) – a leading integrated financial services group of India. Hichens, Harrison & Co.
plc. (HH), established in 1803 is London’s oldest brokerage and investment firm with a
global footprint. Post its acquisition through REL’s indirect subsidiary - Religare
Capital Markets International (UK) Limited, HH has been rechristened as Religare
Hichens Harrison plc.
8

1.4 Our Joint Ventures
AEGON Religare Life Insurance Company
Life Insurance business (AEGON as a partner)
www.aegonreligare.com
Religare Macquarie Wealth Management Ltd.
Private Wealth business (Macquarie, Australian
Financial Services major as a partner)
http://www.religaremacquarie.com
Vistaar Religare -The Film Fund
India's first SEBI approved Film Fund (Vistaar as a
partner)
http://www.vistaarreligare.com/
Milestone Religare - Private Equity Fund
Milestone, one of India's premier independent fund
houses and Religare have come together and
through the JV have formed an entity, Milestone
Religare Investment Advisors Private Limited.
http://www.milestonereligare.com/
1.5 Religare management team:-
Central Leadership Team
• Mr. Sunil Godhwani
CEO & Managing Director, Religare Enterprises Limited
• Mr. Shachindra Nath
Group Chief Operating Officer, Religare Enterprises Limited
• Mr. Anil Saxena
Group Chief Finance Officer, Religare Enterprises Limited
Board of Directors - Religare Enterprises Limited
9

• Mr. Malvinder Mohan Singh Non Executive Chairman
• Mr. Sunil Godhwani Managing Director & Group CEO
• Mr. Shivinder Mohan Singh Non Executive Director
• Mr. Harpal Singh Non Executive Director
• Mr. Deepak Ramchand Sabnani Independent Director
• Mr. Padam Bahl Independent Director
• Mr. J. W. Balani Independent Director
• Ms. Sunita Naidoo Independent Director
• Mr. R. K. Shetty Alternate to Mr. J. W. Balani
• Capt. G. P. S. Bhalla Alternate to Mr. Deepak Sabnani
10

1.6 OUR ORGANIZATIONAL STRUCTURE
Fig1.1
1.7 Religare securities ltd services:
The services provided by Religare securities Ltd are
E-Broking
Religare provides software’s to customers for online trading on BSE, NSE,
F&O, MCX & NCDEX.different software product are:
Religare online portal
• User-friendly browser for investors
• Easy online trading platform
• Works in proxy and firewall system set up
• Integrated Back office: Access account information – anytime,
anywhere
11

• Streaming quotes
• Refresh static rates when required
• Multiple exchanges on single screen
• Online fund transfer facility
Religare LG Diet
• Application based ideal for traders.
• Multiple exchanges on single screen
• User friendly & simple navigation
• BSC, NSC, F&O, MCX & NCDEX
Investment Advisory Services
To derive optimum returns from equity requires professional guidance and
advice. Professional assistance will always be beneficial in wealth creation.
Investment decisions without expert advice would be like treating ailment
without the help of a doctor.
● Expert Advice: Their expert investment advisors are based at
various branches across India to provide assistance in designing and
monitoring portfolios.
● Timely Entry & Exit: Their advisors will regularly monitor
customers’ investments and guide customers to book timely profits. They
will also guide them in adopting switching techniques from one stock to
another during various market conditions.
● De-Risking Portfolio: A diversified portfolio of stocks is always
better than concentration in a single stock. Based on their research, They
diversify the portfolio in growth oriented sectors and stocks to minimize
the risk and optimize the returns.
Portfolio Management Services
12

Religare offers Portfolio management service (PMS) to address varying
investment preferences. As a focused service, PMS pays attention to details,
and portfolios are customized to suit the unique requirements of investors.
Religare PMS currently extends six portfolio management schemes, viz
Monarque, Panther, Tortoise, Elephant, Caterpillar and Leo. Each scheme is
designed keeping in mind the varying tastes, objectives and risk tolerance of
our investors.
Our Schemes
Monarque
The portfolio aims at the ultra High net worth income(HNI) category and is
structured to provide higher returns by taking aggressive positions across
sectors and market capitalizations.
Panther
The Panther is suitable for the "High Risk High Return" investor with a
strategy to invest across sectors.
Tortoise
The Tortoise is suitable for the "Medium Risk Medium Return" investor with a
strategy to invest in companies which have consistency in earnings, growth
and financial performance. The Tortoise portfolio aims to achieve growth in
the portfolio value over a period of time by way of careful and judicious
investment in fundamentally sound companies having good prospects.
Elephant
The Elephant portfolio aims to generate steady returns over a longer period
by investing in Securities selected only from BSE 100 and NSE 100 index.
This plan is suitable for the “Low Risk Low Return” investor with a strategy to
invest in blue chip companies, as these companies have steady performance
and reduce liquidity risk in the market.
Caterpillar
13

The Caterpillar portfolio aims to achieve capital appreciation over a long
period of time by investing in a diversified portfolio. This scheme is suitable for
investors with a high risk appetite. The investment strategy would be to invest
in scrips which are poised to get a re-rating either because of change in
business, potential fancy for a particular sector in the coming years/months,
business diversification leading to a better operating performance, stocks in
their early stages of an upturn or for those which are in sectors currently
ignored by the market.
Leo
Leo is aimed at retail customers and structured to provide medium to long-
term capital appreciation by investing in stocks across the market
capitalization range. This scheme is a mix of moderate and aggressive
investment strategies.
1.8 BENEFITS OF RELIGARE
We serve you with a diligent, transparent & process driven approach and
ensure that your money gets the care it deserves.
No experts, only expertise. PMS brought to you by Religare with its solid
reputation of an ethical and scientific approach to financial management.
While we offer you the services of a dedicated Relationship Manager who is
at your service 24x7, we do not depend on individual expertise alone. For you,
this means lower risk, higher dependability and unhindered continuity.
Moreover, you are not limited by a particular individual’s investment style.
No hidden profits. We ensure that a part of the broking at Religare Portfolio
Management Services is through external broking houses. This means that
your portfolio is not churned needlessly. Using more broking firms gives us
access to a larger number of reports and analysis, enabling us to make better,
more informed decisions. Furthermore, your portfolio is customized to suit
your investment objectives.
14

Daily disclosures. Religare Portfolio Management Services gives you daily
updates on your investment. You can pinpoint where your money is being
invested, 24x7, instead of waiting till the end of the month to keep track.
No charge till you profit*.So sure are we of our approach to Portfolio
Management that we do not charge you for our services, until your
investments start showing profit. With customized investment options Religare
Portfolio Management Services invites you to invest across five broad
portfolios to suit your investment needs.
* Except fixed administrative charges.
OUR LOGOS
Logo Logo
Fig 1.2
1.9 Significance of Study
In most industrialized countries, a substantial part of financial wealth is not
managed directly by savers, but through a financial intermediary, which
implies the existence of an agency contract between the investor (the
principal) and a broker or portfolio manager (the agent). Therefore, delegated
brokerage management is arguably one of the most important agency
relationships intervening in the economy, with a possible impact on financial
market and economic developments at a macro level.
1.10 Objective of the Study
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The project includes a detail study of portfolio management in share market.
The following are the main objective of the project
1. Study of the basics of Indian stock market
2. Study and Analysis of services provided religare securities ltd.
3. Study and analysis of services provided by other broking house in
noida.
4. Comparison of services provided by religare and other broking houses
in noida
5. Study about the cross selling of demat account.
6. Concluding and recommending procedures to improve upon the trading
options.
1.11 Scope of Study
In most of the metros, people like to put their money in stock options instead
of dumping it in the bank-lockers. Now, this trend pick pace in small but fast
developing cities like Chandigarh, Gurgaon, Jaipur, Noida etc. My research is
based on the Noida region.
As the per-capita-income of the city is on the higher side, so it is quite obvious
that they want to invest their money in profitable ventures. On the other hand,
a number of brokerage houses make sure the hassle free investment in
stocks. Asset management firms allow investors to estimate both the
expected risks and returns, as measured statistically.
E-Commerce benefits
The face of doing business both within Australia and overseas is rapidly
changing. The Internet, electronic funds transfer, e-commerce and the like
have brought with them both opportunities and threats. Your business
competitors may no longer be just the business down the street, but a
business located in any number of places around the world.
16

The flip side of course is that your potential market is now not just your local
area, or even Queensland, but cashed up consumers across the world. E-
commerce won't go away. On-line and Internet commerce is currently
experiencing dramatic growth, and is expected to add 2.7% to Australia's
GDP by 2010. Aggregate employment is also expected to rise by half a per
cent as a result of e-commerce. It is now a truism that to stay in business in
the new millennium, e-commerce will have to be a part of your business.
According to experienced organisations, the introduction of e-commerce can,
if it's done correctly:
• 1.lower transaction costs
• 2.reduce inventory holdings
• 3.provide a competitive business advantage
• 4.expand one's market
• 5.increase speed to market
• 6.streamline supply chain managemen
E-Commerce strategy
The Department has set itself a vision that Queensland will be a leading
participant in the global new economy with the objective that the Department
of tourism, Regional Development and Industry will be a catalyst for the
uptake of e-commerce by Queensland businesses. To achieve this vision and
objective, the department will pursue the following four key strategies:
1. Facilitating e-commerce for business
The department will facilitate the uptake of e-commerce within the business
community by actively promoting e-commerce to business, raising awareness
and providing measures which support effective e-commerce adoption.
2. Creating the capability
The department will assist in the provision of hard and soft infrastructure
necessary for successful participation in the information economy.
17

3. Providing leadership within government
The department will coordinate with and influence other agencies, at the
State, Commonwealth and Local level, to promote the benefits of e-
commerce and to encourage them to develop initiatives aimed at
increasing the uptake of e-commerce by the business community.
4. Modelling the way
The department will become an active adopter of e-commerce
technologies leading to improvements in its internal business processes
and service delivery and opportunities for clients and suppliers to be
exposed to secure e-commerce transactions.
What are the existing practices in developing countries with respect to
buying and paying online? In most developing countries, the
payment schemes available for online transactions are the
following:
A. Traditional Payment Methods
• Cash on delivery. Many online transactions only involve submitting
purchase orders online. Payment is by cash upon the delivery of the
physical goods.
• Bank payments. After ordering goods online, payment is made by
depositing cash into the bank account of the company from which the
goods were ordered. Delivery is likewise done the conventional way.
B. Electronic Payment Methods
• Innovations affecting consumers, include credit and debit cards,
automated teller machines (ATMs), stored value cards, and e-banking.
• Innovations enabling online commerce are e-cash, e-checks, smart
cards, and encrypted credit cards. These payment methods are not too
18

popular in developing countries. They are employed by a few large
companies in specific secured channels on a transaction basis.
• Innovations affecting companies pertain to payment mechanisms that
banks provide their clients, including inter-bank transfers through
automated clearing houses allowing payment by direct deposit..
Ecommerce Vs E-Business
While the words Commerce and Business don't have much difference in
English and in fact are largely interchangeable as nouns describing organized
profit-seeking activity, there is a difference between eCommerce and
eBusiness. The difference is quite artificial, but different terms do carry
different meanings. The first wave of thinking about electronic business was a
reaction to the success of Amazon and Dell in selling products over the
Internet. Electronic business transactions involving money are "eCommerce"
activities. However, there is much more to eBusiness than selling products:
what about marketing, procurement and customer education? Even to sell on-
line successfully, much more is required than merely having a website that
accepts credit cards. We need to have a web site that people want to visit,
accurate catalog information and good logistics.For selling online successfully
one needs to know basics of website development. The term "eBusiness" was
introduced as a deliberate attempt to say to people: "Your first understanding
of eCommerce was too narrow. To be successful, we need to think
more broadly." E-business goes far beyond ecommerce or buying and
selling over the Internet, and deep into the processes and cultures of an
enterprise. It is the powerful business environment that is created when you
connect critical business systems directly to customers, employees, vendors,
and business partners, using Intranets, Extranets, ecommerce technologies,
collaborative applications, and the Web. Dell Computer gets a lot of attention
as a pioneering ebusiness today and is the best example of this form of
business. It sells $ 15m worth of computers from its websites each day. The
company has created a ‘fully integrated value chain’ – a three-way information
partnership with its suppliers and customers by treating them as collaborators
who together find ways of improving efficiency across the entire chain of
19

supply and demand. Dell's suppliers have real-time access to information
about its orders. Through its corporate extranet, they can organize their
production and delivery to ensure that their customer always has just enough
of the right parts to keep the production line moving smoothly. By plugging its
suppliers directly into the customer database, Dell has ensured that they will
instantly know about changes in their demand. Similarly, by allowing entry to
customers into its supply chain via its website, Dell enables them to track the
progress of their orders from the factory to their doorstep. Successful new-
businesses can emerge from nowhere. Trends suggest it takes little more
than two years for a start-up to emerge out of nowhere, formulate an
innovative business idea, establish a web-presence and reach a dominant
position in its chosen sector. The high valuation of the stocks of such start-ups
and the massive amount of venture capital flowing into their businesses is
proof enough that complacency is foolhardy here. America has already
reached a threshold in e-business, from where it is set to accelerate into
hyper-growth, as per Forrester Research. Britain and Germany will go into the
same level of hyper-growth two years after America, with Japan, France and
Italy, a further two years behind.
E-business is a powerful tool for business transformation that allows
companies to enhance their supply-chain operation, reach new markets, and
improve services for customers as well as for suppliers and employees.
However, implementing the ebusiness applications that provide these benefits
may be impossible without a coherent, consistent approach to e-business
security.
Traditional network security has focused solely on keeping intruders out using
tools such as firewalls. This is no longer adequate. E-business means letting
business partners and customers into the network, essentially through the
firewall, but in a selective and controlled way, so that they access only the
applications they need. To date, organizations have controlled and managed
access to resources by building authorization and authentication into
each e-business application. This piecemeal approach is time-
consuming error-prone, and expensive to build and maintain. Emerging
technology provides a new role-based access control infrastructure for all of
the enterprise’s e-business applications. With this infrastructure, developers
20

no longer need to code security features into each application. This can
greatly speed up and simplify the deployment of new applications, cut
maintenance costs, and give organizations a consistent security policy.
This new access control infrastructure also lets organizations implement
consistent privacy policies and ensures that authorized people are denied
access to sensitive business information sources. In addition, a centralized
security solution lends greater flexibility to supporting new technologies such
as mobile Internet devices, which are expected to proliferate over the next few
years. Besides controlling access, organizations also need to monitor security
events across the enterprise so that suspicious activities can be quickly
pinpointed. This is becoming critical as enterprise networks grow rapidly in
complexity and strategic importance. New monitoring technology lets
organizations consolidate data from all their disparate security sensors—
firewalls, anti-virus software, host systems, and routers— and provide a
coordinated single image of potential intrusions for effective incident
response. The greatest security threat to e-Businesses is not from the outside
but from the inside. Employees or former employees that either are looking to
cause problems or simply seeing how far they can break into a company
database are a greater threat to most organizations than outside crackers.
The obvious ways to prevent unauthorized access by insiders are the ones
that most businesses thing they’re already taking:
• keeping secure passwords
• changing passwords often for administrative access to system (root
access)
• granting the most limited access needed to employees
• having procedures in place to revoke privileges when employees leave
the company
Telecommuters need not necessarily work from the home. A more recent
extension of telecommuting is distributed work. Distributed work entails the
conduct of organizational tasks in places that extends beyond the confines of
traditional offices. It can refer to organizational arrangements that permit or
21

require workers to perform work more effectively at any appropriate location,
such as their homes and customers' sites - through the application of
information and communication technology. An example is financial planners
who meet clients during lunchtime with access to various financial planning
tools and offerings on their mobile computers, or publishing executives who
recommend and place orders for the latest book offerings to libraries and
university professors, among others. Another example is the telework centers
around Washington, D.C. in Maryland (6), Virginia (8), and D.C. and West
Virginia (one each), which generally are relatively close to a majority of people
who might otherwise drive or take public transit, and also feature the full
complement of office equipment and a high-speed Internet connection for
maximum productivity, and perhaps may feature support staff such as
receptionists.[12]
These work arrangements are likely to become more popular with current
trends towards greater customization of services and virtual organizing.
Distributed work offers great potential for firms to reduce costs, enhance
competitive advantage and agility, access a greater variety of scarce talents,
and improve employee flexibility, effectiveness and productivity. It has gained
in popularity in the West, particularly in Europe. While increasing in
importance, distributed work has not yet gained widespread acceptance in
Asia.
Virtual offices
Virtual offices are attractive to management because they reduce overheads,
reduce office space needs, increase productivity, and reduce staff turnover.
However, managers (whose roles are varied and not well defined) in
telecommuting roles typically receive fewer promotions due to the lack of
direct contact they need. From that aspect, telecommuting seems to work
best for professionals such as engineers.
22

Coworking
Coworking is a social gathering of a group of people, who are still working
independently, but who share a common working area as well as the synergy
that can happen from working with talented people in the same space.
Typically, a coworking facility offers hotdesking and other services with
common office infrastructure, as well as social areas such as a coffee shop.
Microjobs
Telecommuters who begin working from home part-time for one company
may acquire self-employed status through agreement or necessity. From that
position an employee may seek more work from other sources. Ultimately, the
size of the job unit may reduce, so that many more people are working for
small periods of time for multiple clients. These short-time-period jobs have
been named microjobs.
Telecommuting
Telecommuting 2.0 offers solutions to some of the problems that have kept
telecommuting from being fully embraced by management and workers.
Telecommuting 2.0 takes advantage of Remote Office Centers, which are
distributed centers for leasing offices to individuals from multiple companies.
A Remote Office Center provide professional grade network access, phone
system, security system, mail stop and optional services for additional costs.
ROCs are generally located in areas near where people live throughout
population centers, so that workers do not have to commute more than a
couple of miles. The telecommuter works in a real office but accesses the
company network across the internet using a VPN just as in traditional
telecommuting. Telecommuting 2.0 has the additional cost since the company
will have to lease office space for the employee, but companies already pay
for office space and network infrastructure in traditional office environments. The continuing increases in
fuel costs are making telecommuting (either version 1.0 or 2.0) more and more attractive for companies and workers
alike.
Potential drawbacks
23

• Telecommuting has come to be viewed by some as more a
"complement rather than a substitute for work in the workplace".[19]
Thus, some workers may find their work load increased to the point
where they are under more stress than before. Distractions at home
can have a similar effect, especially among workers who leave the
office to be better able to care for small children and the infirm.
• Fellow employees in the employer's office sometimes resent home
telecommuters
• A telecommuter may lack the sense of loyalty to the company that he
or she would have if working at an office.
• Employees that work by telecommuting can lose space in their homes,
possibly even suffer the cost of converting a room into an office.
• Telecommuters need to be more adept at using their equipment as
they have less access to a dedicated employee at the company whose
job is to maintain that equipment.
• Even when a company successfully implements telecommuting
practices, increasing productivity and decreasing stress, they face an
increased risk of confidential data loss and risks to data integrity
resulting from the increased geographical diversity of their network and
the loss of direct corporate control over the telecommuter's physical
work environment. For instance, a major breach of privacy by the
United States Department of Veterans Affairs resulted from a laptop
being stolen from a worker who took his work home. The result was
described as "potentially the largest loss of Social Security numbers to
date."
• Initially, managers may view the teleworker as experiencing a drop in
productivity during the first few months. This drop occurs as "the
employee, his peers, and the manager adjust to the new work
regimen". The drop could also be accountable to inadequate office
24

setup. Managers need to be patient and let the teleworker adapt. It can
be claimed that as much as "70 minutes of each day in a regular office
are wasted by interruptions, yakking around the photocopier, and other
distractions". Eventually, productivity of the teleworker will climb.
• Management needs to recognise the communication barriers that
telecommuters experience. The feeling of alienation can be very
difficult for the teleworker. The job should be clearly defined as well as
its objectives. Performance measures should be thorough and
apparent.
• Managers need to be aware that although overhead decreases, the
cost of technology becomes greater. Information Technology (IT)
managers experience greater demands because of user requirements
for remote access through laptops, personal digital assistants, and
home computers. Use of non-standard software can create problems.
Setting up security and virtual private networks increase the demands
for IT.
• Traditional line managers are accustomed to managing by observation
and not necessarily by results. This causes a serious obstacle in
organizations attempting to adopt telecommuting. Liability and workers'
compensation can become serious issues as well. Companies
considering telecommuting should be sure to check on local legal
issues, union issues, and zoning laws. Telecommuting should
incorporate training and development that includes evaluation,
simulation programs, team meetings, written materials, and forums.
Information sharing should be considered synchronous in a virtual
office and building processes to handle conflicts should be developed.
Operational and administrative support should be redesigned to
support the virtual office environment. Facilities need to be coordinated
properly in order to support the virtual office and technical support
should be coordinated properly. The conclusion for managers working
within telecommuting organizations is that new approaches to
25

"evaluating, educating, organizing, and informing workers" should be
adopted.
Retail offering
Advisory Product
Mutual Fund Advisory Services
Our team of experts across India helps you in selecting the right scheme from
over 500 offerings, matching your needs, goals and risks. In addition to this,
we also help you constantly monitor your MF portfolio, making changes
according to your changing needs as per the market scenario, in order to
make your money work for you.
Portfolio Management Services (PMS)
At RELIGARES Investsmart securities limited, we offer you just the solution
that allows you to relax as we put your money to work through the IISL-PMS,
a Discretionary Portfolio Management Service
IPO Advisory & Distribution Services
RELIGARES Investsmart securities limited is one of India's leading
companies engaged in the activity IPO Advisory and Distribution. Our primary
markets division does a comprehensive research before recommending
issues to clients. As a part of our online offering, customers can invest in
IPO's not only through our branches but also through our website, which also
provides you with regular updates on the IPO scenario, Open IPO's as well as
all the forthcoming IPO's at any given point of time.
Insurance Advisory Services
RELIGARES Investsmart securities limited is your one stop shop for all
Insurance & Retirement needs. We ha ve also been recognized as Best
Retail Financial Advisor by CNBC TV 18 for two years in a row 2005-06
and 2006-07. We are a composite insurance broker providing comprehensive
risk management solutions, both for corporates as well as individuals
key service features include the following:-
 Risk management solutions for all
26

 Comprehensive research for all policies available on a regular basis
 Recommendations on a comprehensive insurance cover based on
clients needs
 Maintain proper records of client policies
 Continuous monitoring of client account
Equities & Derivatives RELIGARES Investsmart is a full service broking
house offering services across both the Cash and F&O segments. We are a
member with National Stock Exchange (NSE) as well as the Bombay Stock
Exchange (BSE) and cater to your trading needs through a network of more
than 300 offices across India. We also offer comprehensive trading
solutions through our website www.investsmart.in which is equipped with
host of unique features to cater to your trading needs. Our offerings include 3
different trading platforms to suit your individual needs, depending upon your
profile. Our experienced team of Research Analysts and Advisory
Managers guide you with appropriate solutions, backed by in-depth research,
knowledge and expertise on a regular basis. We would constantly help you
with strategies for investments in equities, recommendations for trading on
futures & options, hedging with Nifty and other product and opportunities of
risk-less arbitrage between various segments.
NRI Services
We offer investment solutions for NRIs with a host of services to make
investing in India simple. We guide you at every step of your investment in
India right from PAN Card Assistance* to using our robust trading platforms till
assistance on accounting & income tax returns filing* in India
27

Additional NRI Product offerings
 Mutual fund
 Insurance
 IPOs
 Other wealth management product
Institutional offering
Investment Banking
RELIGARES offers you extensive range of Investment Banking Services for
equity related products and instruments. Our team advises you on
transactions like business structuring and capital raising opportunities based
on your corporate needs and state of capital markets. Services we specialize
in include Management of:
 Initial Public Offering (IPOs)
 Follow-on Offerings
 Qualified Institutional Placements (QIPs)
 Buyback of Equities
 Open Offers
 Mergers & Acquisitions
 Private Equity Placements
28
NRI Product offerings
 NREquity  NRI PMS
Complete control of equity
investments in India
Customized Solutions to meet NRI
Investment needs

 ESOPs
Institutional Equity
Company’s efficient execution, quality research, top quality human resources
and complete compliance with stock exchange regulations, as well as
business standard ethics lend towards our exemplary services to investors,
through IPOs, equities, derivatives and mutual funds.
Company also focus on identifying undiscovered value stocks to investors.
Through it’s array of services, this division is well-suited to corporate
investors, banks, financial institutions, insurance companies and FII’s
.company’s Institutional Equity Business (IEB) is well positioned to offer
support for a complete range of investment banking service to corporates.
IISL, work closely with institutional investors, private equity investors and
corporates, have been hosting round table conferences with leading CIOs /
Fund Managers etc. Also, conduct activities like organizing of road shows,
enabling the senior management to interact with FIIs, regular conference calls
for institutional Investors etc. This works as a pre-requisite to investing in
stocks. Company’s expertise in this area also extends to international
investors from Singapore, Hong Kong, USA and the UK.
Institutional Debt Institutional debt broking division includes,
secondary market broking, primary market debt placement & distribution and
provident fund advisory services. Secondary debt broking is the principle
service provided by this division. The clients mainly comprise of institutional
debt players, such as banks, primary dealers, mutual funds, large provident
funds and in some cases corporate treasuries. The division empanelled with
almost all banks, primary dealers and mutual funds, on whose behalf it acts
either on the buying or selling side. All types of debt papers are covered,
including government securities, treasury bills, public sector bonds, corporate
29

bonds etc. This desk also provides transacting and advisory services to
various provident funds and HNI clients.
The primary market services cover placement of debt paper issued by
corporates, with institutional segments covering banks, mutual funds etc.
These services cover various activities :-
 Advising the clients on the issuance including the instrument, quantum,
timing, other instrument specific structuring such as put / call option,
conversion option and rating. Assisting in the rating exercise and
suggesting various means and options to improve rating if so desired,
through “Structured Obligations” or other mechanisms.
 Pre marketing the placement / issuance
 Selling / placing the issuance
 Assisting in any related documentation for the issuance
 Assisting in all other steps to complete the issuance for draw down
funds The debt instrument covered by this division cover both short
term as well as longer term instruments. Commercial paper and
MIBOR Linked Bonds are popular among the short-term instruments.
The division uses a proprietary online platform called “DebtonNet” for
online book building of debt issuances.
RELIGARES investsmart securities limited is facilitating the three type of
trading product to its retail customer are
SmartSTART
SmartStart is a powerful browser based trading system for those who are
relatively new to online investing. A unique integrated account, which
integrates your banking, broking, and demat accounts. A comprehensive
trading service, which allows you to invest in equities and derivatives.
SmartStart trading platform allows you the flexibility of trading on any internet
capable system, with access to both the NSE and BSE.
30

FEATURES
 Trade on NSE & BSE
 Simple order entry for Equity & Derivatives
 Fully Customizable display
 User friendly Get Quote screen
 Integrated Accounts (Bank. Demat & Trading)
 Live order status
 Track your orders real-time
 Dynamic buying power
 Works behind a Proxy
 Back office access
31

SYSTEM REQUIREMENTS
Browser Type Microsoft Internet explorer 6.0 or higher
Internet Connection Dial-up connection (Modem at a minimum of
28.8/33.6 Kbps)
System Pentium 3 and above. RAM 128 MB or above
Operating System Windows 98/2000 or Windows XP
BENEFITS
NSE& BSE Access -
Flexibility of trading on both the NSE & BSE via a single screen.
Fully Customizable display –
The save desktop option allows you to save your created trade screen layout,
so the next time you access the application the created layout is not lost
Integrated Accounts (Bank. Demat & Trading) –
Integrates your banking, broking and demat accounts. This enables you
to trade in shares without going through the hassles of tracking settlement
cycles, writing cheques and Transfer Instructions, chasing your broker for
cheques or Transfer Instructions etc.
Live order status –
Tracking all your orders is made easy through the order status screen.
Further drill down into all details pertaining to an order is available in the order
detail sub report
Track your orders –
Track your stock order and trades
Dynamic buying power –
Reflects your credits and debits instantly on every trade execution. No
need to refresh each statement to know your latest buying limits
32

Works behind a Proxy –
This platform can be accessed on any Internet enabled network. You can
access it even from your place of work
Back Office access –
View segment wise ledger bills and contract notes, trades, positions,
account contract notes, trades, positions, account balance,
realized/unrealized profit & loss, and buying power all in real time
SmartINVEST
Smartinvest is a browser-based system designed for customers who transact
occasionally. It is ideal for investors who believe in the Buy and Hold
approach towards investment in equities. SmartInvest's capability as a
browser-based trading platform gives you the benefit of real-time streaming
data with the flexibility of trading on any Internet capable system. With access
to both the NSE & BSE, you are in the driver's seat when routing your order to
the best price on either of the exchanges. Smartinvest sophisticated yet easy
to use point and click order entry interface allows you to react more quickly to
the markets and make better decisions.
FEATURES
33

 Instant Loading
 Works behind a Proxy
 Live Streaming quotes
 Multiple Watch lists
 NSE& BSE Access
 Single order form for Cash and FnO
 Point and Click order entry
 Hot Key Functions
 Market Depth Window
 Back Office access
SYSTEM REQUIREMENT
Browser Type: Microsoft Internet Explorer 6.0 or higher (Java enabled)
Internet Connection: Broadband/Dial-Up connection (Modem at a minimum
of 28.8/33.6 Kbps)
System Pentium :3 or 4 GHz or best available at market RAM (Physical) 128
MB or better
Operating System : Windows 98/2000 or Windows XP
BENEFITS
Instant Loading -
The browser-based applet system allows you instant access to your account
with no wait time, unlike other systems that take a few minutes to load.
Works behind a Proxy –
This platform can be accessed on any Internet enabled network. You can
access it even from your place of work
Live Streaming quotes –
34

Keep an eye on the stocks you care about most with streaming, real-time
quotes and customizable market data. Color-coded price changes help you to
spot trends and react to them quickly
Multiple Watch lists –
The new watch list option allows you to create upto 10 watch lists. Each watch
list can be personalized by inserting securities which you would like view as a
group
NSE& BSE Access –
Flexibility of trading on both the NSE & BSE via a single screen
Single order form for Cash and FnO –
Single order form offers you the convenience of transacting in various
segments of the market without having to switch between multiple windows
Point and Click order entry –
Makes order entry quick and simple with a click on the security the same gets
inserted into the order form on your trade screen
Hot Key Functions –
Using a single keystroke (Hot Key) function you can achieve important tasks
very similar to a broker's terminal. Accessing important reports is also one
keystroke away
Market Depth Window -
It gives an immediate "at a glance" info about the stock you are following. The
view provides the best 5 bid and offer quotes and the outstanding order
quantities
Back Office access –
View segment wise ledger bills and contract notes, trades, positions, account
balance, realized/unrealized profit & loss, and buying power all in real time
SmartTRADE
SmartTrade is an EXE based desktop software designed for active traders
who transact frequently to capture favorable short-term price movements. The
35

platform offers active traders the tools they need to make critical decisions
with confidence. SmartTrade is designed and built from the ground up to
address the needs of active traders. SmartTrade makes the most of state-of
the-art technology to deliver power, speed and reliability. Through an easy-to-
use interface, users are provided with the same tools and advantages that the
professionals enjoy.
FEATURES
 Fully Customizable display
 Dynamic Charts with Indicators
 EOD Charts
 Real-Time market data
 Advanced Alert capabilities
36

 Live order status
 Track your orders real time
 Real time position updates
 Dynamic buying power
 Derivative chain
 Lock terminal option
 Message window docking
SYSTEM REQUIREMENT
Browser Type Microsoft Internet Explorer 6.0 or higher (Java
enabled)
Internet Connection Broadband/Dial-Up (Modem at a minimum of
28.8/33.6 Kbps)
System P 3 or 4 GHz or best available at market RAM 128
MB or better Operating System Windows 98/2000 or Windows XP
BENEFITS
Fully Customizable display
The save desktop option allows you to save your created trade screen layout,
so the next time you access the application the created layout is not lost.
Dynamic Charts with Indicators
Provides you a wealth of charting capabilities and timing indicators, which
allow you to go right into the action with real-time daily charts, and intra-day
charts. Watch price movements by minutes, days, or weeks.
37

EOD Charts
SmartTrade puts up to 5 years of in-depth market history at your
command with the power to instantly back-test any trading strategy you
design, before risking one rupee of your trading capital.
Real-Time market data
Get real time market data from both the NSE and BSE similar to what your
broker gets.
Advanced Alert capabilities
Alert Window allows you to be free from watching every tick. Users can
be notified once a security has reached the set parameters. Multiple securities
can be monitored using the set parameters. These alerts can be triggered
both visually and audibly.
Live order status
Tracking all your orders is made easy through the order status screen.
Further drill down into all details pertaining to an order is available in the order
detail sub report.
Track your orders real time
Track your stock order and trades in real-time.
Real time position updates
All your positions are updated automatically and instantly. No need to use
the refresh button at all.
Dynamic buying power
Reflects your credits and debits instantly on every trade execution. No
need to refresh each statement to know your latest buying limits.
Derivative chain
This feature provides you with a list of all derivative contracts available for the
selected security. To view derivative prices of a security just right click on the
symbol and click on derivative chain.
Lock terminal option
If your system is unattended this function locks the trading platform for you
and can be accessed again only on providing the proper login details.
Message window docking
38

This feature enables you to receive trading messages, intra-day trading calls,
and messages from both the exchanges flashed real time onto your screen
These are the various product ranges for its retail customer
SMART POWER
SMART ELITE
Advance subscription
value(Rs)
Default 2500 12500 25000 50000
delivery brokerage 0.50% 0.35% 0.25% 0.20% 0.15%
intraday brokerage CM (1
leg) 0.05% 0.04% 0.03% 0.03% 0.02%
intraday brokerage CM (2
leg 0.05% 0.04% 0.03% 0.03% 0.02%
intraday brokerage F&O (1
leg) 0.05% 0.04% 0.03% 0.03% 0.02%
intraday brokerage F&O (2
leg) 0.05% 0.04% 0.03% 0.03% 0.02%
option brokerage(which is
high)
2.5% or
Rs.100
2.5% or
Rs 90
1% or
Rs.60
.75% or
Rs.40
.60% o
Rs.30
ONLINE FUND TRANSFER
IISL have tie up with 5 banks, which are. HSBC, HDFC, IDBI, CITI, AXIS
bank , for online money transfer
LITRATURE REVIEW
Internet Usage and Population Statistics:
39

YEAR Users Population % Pen.
2001 14,00,000 1,09,48,70,677 0.10%
2002 28,00,000 1,09,48,70,677 0.30%
2003 55,00,000 1,09,48,70,677 0.50%
2004 70,00,000 1,09,48,70,677 0.70%
2005 1,65,00,000 1,09,48,70,677 1.60%
2006 2,25,00,000 1,09,48,70,677 2.10%
2007 3,92,00,000 1,09,48,70,677 3.60%
2008 5,06,00,000 1,11,22,25,812 4.50%
2009 4,00,00,000 1,11,22,25,812 3.60%
2010 4,20,00,000 1,12,96,67,528 3.70%
India Broadband Subscribers: 188,600 broadband subscribers
India appears to have embraced the Internet with a degree of ambivalence.
There is tremendous enthusiasm amongst the dial-up users and an estimated
60% of users regularly access the Internet via the country’s more than 10,000
cybercafes. But when it comes to high-speed broadband access, there is
reluctance, especially within the corporate sector, and the take-up rate has
been slow. By early 2007 there were about 700,000 broadband subscribers –
a penetration of less 0.1%. This report looks at the stage the development of
broadband Internet has reached in India. Some information is also provided
on data services available in the country
The Internet Boom in India has become one of the major contributors to the
economic growth of the country. The use of Internet has increased more than
11 times in the last 7 years. The rise in the use of Internet has led to the
growth of cyber cafes and Internet parlor throughout India. The number of
household connectivity has also increased with the boom in the information
technology. Computer has become a must have for every family. Though
used for different purposes the modern day PC can handle a number of
different users with variegated needs. With this the Internet connectivity has
enhanced in the household sector, which is an important contributor to the
rise of the Internet services in India. The cost effective Internet services, easy
accessibility to Internet service, the enhanced speed of the Internet, better
service have helped the Internet boom in India. The Internet boom has
affected the metros as well as the towns and the smaller semi urban towns.
The number of Internet users since the year 2000 has increased by a
staggering 69 times in the metros and 33 times in the semi urban towns. The
40

Internet has become an important source of knowledge and information.
Internet has revolutionized the access to information. With the strike of a
button, users can get any relative information through the Internet. The
Internet is a collection of web addresses, which is jointly called as the World
Wide Web (www). With the Internet Boom in India there is rise in the activity
of the information technology sector. More and more companies are coming
up as a part of the IT enabled services, which are contribution to the Internet
boom in India. The Internet has extremely popular among the youth and as
well as the older generation. On the Internet the information is searched with
the help of search engines and one such well known search engine is the
Google - and it is a little genie, you wish for it and bang its in front of you on
the screen. There are dedicated Internet sites, which supply information about
various aspects like business, finance, geography, scientific developments,
inventions, and many more. With the rapid development in the IT sector, all
most of the educational institutions, schools have included computers as a
compulsory subject in the curriculum. The Internet is the best source of
information provider even for education.
The Internet boom in India has also contributed to the generation of
employment. With the rise in the popularity of Internet, there is need for
professionals who would feed the information to the web addresses according
to the different subjects. The content writing and management, web page
designing have become booming sectors within the IT industry in India. The
content writers feed in the information by referring to books, the sources of
information to cater to the ever-growing need for more and more information.
The Internet boom in India is on the rise at present, and as per the trends it
would continue on its path of glory until things might change. The Indian
Broadband Policy 2004, was promulgated by the Department of
Telecommunication (DOT) under the Ministry of Communications &
Information Technology, Government of India. Further, the Indian Broadband
Policy 2004,came into existence as a result of economic reforms implemented
by the Government of India to align its economy with the world economy.
Furthermore, the economic renaissance of India catalyzed the need for the
opening of Indian telecommunication industry which necessitated the
development of the Indian Broadband policy. The Government of India was
41

more focused on fast Internet connectivity and drafted the broadband policy of
India, 2004, to attract investments for the growth of Indian broadband Internet
industry. The Indian Broadband Policy 2004 offered host of fiscal incentives
and tax rebates to attract investors, both domestic and foreign investors. The
main objectives of the Indian Broadband Policy 2004 was to identify the
potential of the use of Internet in the development of Indian industry. Further,
the Indian Broadband Policy 2004 was drafted to align Indian industry with
that of the international market to foster growth of the Indian markets.
Furthermore, Indian Broadband Policy 2004 facilitated the growth of India's
GDP and helped to enhance the quality of life through applications of Internet.
• The main area of such applications are as follows -
• Tele-education
• Tele-medicine
• E-governance
• Entertainment
• Employment generation
The introduction of Indian Broadband Policy 2004 facilitated access to high
speed information and web-based communication. The Government of India
ratified this policy to accelerate the growth of Broadband services across
India. The huge market demand for Internet Broadband connection is
primarily driven by increased Internet and PC penetration. The government of
India realized that the current status of Internet and Broadband access in
India is very low in comparison to international standards and the penetration
of Broadband, Internet and Personal Computer (PC) in India was 0.02%,
0.4% and 0.8% respectively, till the end of December, 2003. Presently, the
high speed Internet connections are available at various speeds. The
Department of Telecommunication (DOT) offers Internet broadband speeds
from 64 kilobits per second (kbps) onwards and Internet connection at 128
kbps is considered as 'Broadband' in India. The different access technologies
offered as per the Indian Broadband Policy 2004 are as follows - ptical Fiber
42

Technologies - provide nearly unlimited bandwidth potential and is steadily
replacing copper network specially in intra-city backbone networks. The fiber
based models are future proof as they are able to provide huge amounts of
bandwidth in the last mile as well as provide a true IP and converged network
that can deliver high quality voice, data and video Digital Subscriber
Lines(DSL) on copper loop - DSL has proved to be an important technology
for provisioning of Broadband services through the copper loop
Cable TV Network - has more penetration power than the Internet broadband
and thus can be leveraged for provisioning Broadband services Satellite
Media - Very Small Aperture Terminals (VSAT) and Direct-to-Home(DTH)
services are encouraged for penetration of Broadband and Internet services
and help to serve remote and inaccessible areas Terrestrial Wireless - is
another upcoming technology platform for Broadband. It was agreed upon to
de-license 2.40-2.48 GHz band for low-power outdoor use on non-protection,
non-interference and non-exclusive basis
The Internet revolution seems to be in full swing, but is India really plugged
into the global community it represents? Maybe yes, maybe no. As the
Internet spins a web of interconnectivity around the globe, as it grows literally
by the hour, India is struggling, not to catch up but to keep from falling further
and further behind.
Inside India, things do seem to be improving. Five years ago there was
limited Internet access but only in a few major cities, all in the hands of the
government. VSNL, the agency responsible for Internet activities, and the
DOT (Department of Telecommunications) provided an agonizingly erratic
connectivity, with miserly bandwidth and far too few phone lines. Connection
rates ran as low as 5% (for every 20 dialups you might get connected once)
and users were frequently cut off. And the rates for this pathetic level of
service were among the highest in the world. Domestic users paid about $2
per hour, and lease lines, for the few companies that could afford them,
ranged over $2000 per month for a 64 Kpbs line. By the end of 1998, after
three years of government monopoly, there were barely 150,000 Internet
connections in India.
43

Today (midyear 2000) the government monopoly is largely over. Dozens of
small to large Internet Service Providers have set up shop, triggering a price
war and an improvement of service. Users are now estimated at over 2
million, with a growth predicted to reach 50 million in the next five
years. Small Internet kiosks have set up even in small towns, and the
governments, both State and Central are pushing for growth in the Internet
sector. Internet is the new buzzword. The many small tutorial colleges that
pushed computer software courses of variable quality are now in a hardsell
scramble to push Net related content. The Internet represents the new wealth
frontier for the middle classes - a good salary and a clean job, and for a few,
the chance to go abroad.
There has been a great increase in Indian content on the Internet. Many net
entrepreneurs have been quick to realize the huge potential of the global
market. Initially, most sites targeted the global Diaspora of Overseas Indians
who had more access to the Internet, not to mention the credit cards that drive
Net commerce. But there is a growing realization that the Net can reach the
large and wealthy Indian Middle class. This group is rapidly plugging into the
Net (still out of range for most people here) and there is increased use of
credit cards.
Additionally, Business to Business (B2B) transactions are on the increase
though there is no accurate estimate of the current or projected volumes. For
Indian businesses interested in an overseas market the Net provides an
efficient medium of communications - a factor that has retarded a great deal
of trade in the past. Email and web sites are available 24 hours a day. And
for the large and growing software industry, the Internet offers the ability to
reach a client, respond to problems on a real time basis, and transfer products
instantly with the click of a mouse. India exports billions of dollars of software
annually, and the industry is growing rapidly. The Internet represents so
much potential for India, and the demand for efficient Internet infrastructure is
growing rapidly. This is where India has been failing. The demand has not
yet been met efficiently and this represents an enormous barrier to business
and societal development.
44

Even the government, which has monopolized infrastructure development
until recently, has recognized it must not hold back this development. They
have opened the industry to private entrants and promised support. In
practice, though, the vast bureaucracies that implement (theoretically) the
government programs have moved sluggishly and ineffectively. For instance,
the private ISPs that were allowed were initially required to acquire their
bandwidth from VSNL which wanted a country wide monopoly on this
lucrative sector. The result, new users signing up competed for increasingly
limited bandwidth. Now the ISPs have been allowed to establish their own
gateways but the effect has not yet been felt extensively. The DOT,
responsible for providing phone lines to ISPs lagged way behind and the new
providers are often left with far too few lines to service the increased
demand. Lease lines are reduced, though still very expensive - approximately
$1000 per month for a 64 Kpbs line.
Some cities in India have developed more efficiently than others. Reports
suggest that Bangalore and Madras currently offer better bandwidth. Of
course, this is all relative to the pathetic service people were forced to put up
with in the past. Hyderabad, where the INDAX offices are located, is trying to
promote a cyber savvy image, but the reality is still very poor. We cannot
justify a lease line (though reports are that prices are due to drop significantly
soon), but rely on a dial up connection that only really works well in the early
hours of the morning or late at night. It is not unusual to be unable to get a
productive connection for hours at a time during the day, even though we use
four or more ISPs. And this poor connectivity still costs us hundreds of dollars
a month. Needless to day, the frustration is acute. Not to mention loss of
productivity. Our experience, multiplied by that of millions of other small
business across the country, amounts to billions of dollars of lost potential
business each year. This is a horrific waste.
Looking at India from a global perspective, it is difficult to see how India can
actually catch up. Advances in technology, connectivity, and usage of the net
are increasing so rapidly that even in developed countries it is hard to keep
up. At present, the percentage of Indians connected to the Net is less than a
fraction of one percent. Even if it soars to 50 million over the next five years,
as predicted, that represents at most 5% of the population.
45

And how can this amount of growth occur over the next five years when the
infrastructure of both the Internet and the telephone network is already far
behind current demand? In developed countries, telephone networks had
basically reached saturation when the Internet arrived. The problem was
primarily to provide the increased bandwidth and line usage the Net
demands. In India the telephone network is antiquated, overextended and
only reaches a fraction of the population which is interested in getting a
phone. Internet demand is straining the telephone system further.
Private ISPs have entered the arena, and though they were initially stymied
by both uncooperative government agencies and by lack of existing
infrastructure, there is some promise here. There are also experiments with
wireless and cable connections, but even here an antiquated infrastructure
and government obstructionism are problems. Businesses are relying more
and more on aspects of the Internet. Email, for instance, is a huge asset to
companies. And more and more companies are entering into web related
business activities, like web site creation, software development, and various
service oriented businesses that utilize the Net, like medical transcription or
data processing for overseas companies.
In any event, it seems likely that in the future those that can pay for it will have
adequate access to the great global community. As in even developed
countries, those that can't pay for it, or lack the skills to use it, will be left
behind. Unfortunately in India, this disadvantaged group will still be the
majority well into the current century. Until the country can mobilize the
resources, the education, and the infrastructure to provide a much larger
section of its population both the means and the reason to access the
Internet, India will not truly join the global community. The total Internet
business is big — worth over Rs 2,200 crore. About Rs 500 crore comes from
advertising, ecommerce (not including billings) and other revenues. Add in
access charges at a minimum of Rs 200 per month, and multiply it with the 7
million-odd subscriber base. What you get is over Rs 1,700 crore being spent
just to get on to the Internet. The revenues for the four big classified sites is
Rs 200 crore. But nobody has an inkling about the numbers for several other
categories such as mobile content or broking. And it is even bigger if we add
46

what the business-to-business (B2B) companies make. According to
investors, they remain among the most profitable Internet companies.
However, this survey will focus more on business-to-consumer (B2C)
companies, since the numbers for B2B companies are almost impossible to
access.
Second Coming
The 1995 Netscape IPO kicked off Web 1.0, creating billion-dollar startups in
the West. It sowed the seeds of the madness that followed. In 1999, the
madness reached India . Back then, Indian entrepreneurs were a bunch of
get-rich-quick wannabes trying to join the bandwagon. The same madness
then created rock-star companies like Google, Yahoo!, Amazon and eBay,
which have a collective market capitalisation of $227 billion (as on 8 February
2006). The 2004 listing of Google, six years after its launch, showed the pace
at which one of the world’s most valuable ‘media’ companies could be
created. That set the tone for Web 2.0. And now, Web 2.0 is showing its first
traces in India. We will get a peek at the quiet revolution that has been
brewing behind the scenes in India for the last 6-12 months. ‘Quiet’ is the
operative word here. Notice that nobody uses the word ‘dotcom’ any more.
These are online businesses or Internet companies. Several get a chunk of
their revenues from a hybrid of online and offline products and services.
Rediff, Indiatimes or Indiabulls are all referred to as matter-of-factly as ITC or
HLL. They are just Indian companies that happen to be online. Even the
approach of investors who did not touch Indian Internet companies earlier,
such as Kleiner Perkins Caufield & Byers, has not created any frenzy or hype.
Almost every major Internet company globally from Yahoo! to Google, has
stated that China and India is where they will be making their next round of
bets. Yet, sedate is what describes the Internet industry here even now. Two
things have changed. One, our size and look, and two, our connect with the
rest of the world.
First, a look at the market. Five years ago, ISPs (Internet service providers)
had just taken off. There was no usage, no broadband, no content. People
were simply trying to re-create successful online businesses of the West. We
were at 38.5 million users (54 per cent growth last year) in June 2005,
according to IAMAI (Internet and Mobile Association of India). More
47

importantly, the linkages of the Internet with the offline world are much
clearer. It offers utilitarian services that people use in their everyday lives —
mail, information, news, shopping, telephony, etc. Global investors and
Internet giants have India on their radar because they know that 65 per cent
of Indians will be 15-35 years of age a decade from now. The youngest
population translates into the largest Web space (research shows that
younger people are more likely to be online). That India has the lowest
broadband prices worldwide ($4-$5 monthly) and is seeing one of the world’s
fastest growing mobile revolutions tells them that the ‘always on Indian’ is
inevitable. They have seen that happening to China. Over the next 3-5 years,
they expect to see it in India. It’s not about just the Internet or India, though.
It’s about every consumer-facing business in Asia. China, with 100 million
Internet users, has been the biggest success story outside the US. The
venture capital interest we see in India right now shadows what the Chinese
Internet already saw 3-5 years back. Two, Indians are innovating to keep
pace with the digital wave that’s sweeping the world. For instance, there aren’t
enough PCs (18 million). But that’s all right. We have enough mobile phones
(80 million, increasing by 5 million monthly), so we will adapt to the mobile
Internet as the Chinese have done so successfully. Then, there aren’t enough
credit cards (12 million). No problem. We’ll create alternative digital payment
systems like mobile micro-payments. Both mobile Internet and online payment
systems are just two of the areas where the entrepreneurial attitude of not
submitting to infrastructure bottlenecks is alive.
This entrepreneurial attitude will surely come in handy to deal with the
challenges ahead. One, there is no vernacular content, so all the 40 million
users are English-speaking. That brings us dangerously close to saturating
the universe of Indians speaking English. To add the next 40 million users, the
Internet has to turn vernacular. “Until that happens, the industry will grow
depending on the rate at which we learn English,” jokes Sanjeev
Bikhchandani, Naukri’s founder-CEO. Last week, Jeevansaathi, a matrimony
portal also owned by Bikhchandani, launched its Hindi version, hoping to work
around precisely this.
48

Two, Indians still live in the all-information-is-free world. We log on for
information and entertainment, but aren’t ready to pay for it. Converting
information-seeking into monetisable revenues will be the key challenge. Part
of the problem is that currently the Internet largely offers commodity services.
So, there isn’t much difference between the mobile ringtones that you
download from Indiatimes or Rediff. There may be some difference in the
quality of information and news, but by and large the Internet is synonymous
with free or cheap information. The magic will happen when people start going
to the Net for premium content. That is when they will pay to access a
website. To be fair, the Internet business has blended very well with the
mainstream economy. It is as much a part of everyday lives now as the PC. It
is simply a matter of time before it capitalises on this. The Industrial
Revolution took about a century before we realised how much it had changed
our lives. This one is just over a decade old
Internet Service Providers (ISPs) in India
There are in all 183 operating Internet Service Providers in India. Of them 41*
ISPs (listed below) have all-status. The remaining are particular state-pacific.
ISPs having all-India licence include:
BSNL CMC RPG Infotech Essel Shyam
Communications
Sify Siti Cable Network Gateway
Systems (India)
World Phone
Internet Services
VSNL Guj Info Petro Hughes Escorts
Communication
s
Astro India
Networks
Reliance Primus
Telecommunications
India
ERNET India RailTel Corporation
Data Infosys GTL Jumpp India L&T Finance
HCL Infinet Primenet Global Tata Internet
Services
Tata Power
Broadband
49

Bharti Infotel Pacific Internet India In2Cable (India) Reliance
Engineering
Associates
BG Broad
India
Swiftmail
Communications
Estel
Communication
Bharti Aquanet
Trak Online
Net India
Spectra Net Reach Network
India
i2i Enterprise
Tata
Teleservices
(Maharashtra)
Comsat Max Gujarat
Narmada Valley
Fertilizers
Corporation
HCL Comnet
Systems and
Services
Harthway
Cable
Broadband in general refers to data transmission where multiple pieces of
data are sent simultaneously to increase the effective rate of transmission. In
network engineering this term is used for methods where two or more signals
share a medium. Broadband is often called high-speed Internet, because it
usually has a high rate of data. In general, any connection to the customer of
256 kbit/s (0.256 Mbit/s) or more is considered broadband Internet. The
International Telecommunication Union Standardization Sector (ITU-T)
recommendation I.113 has defined broadband as a transmission capacity that
is faster than primary rate ISDN, at 1.5 to 2 Mbit/s. The FCC definition of
broadband is 200 kbit/s (0.2 Mbit/s) in one direction, and advanced broadband
is at least 200 kbit/s in both directions. The OECD has defined broadband as
256 kbit/s in at least one direction and this bit rate is the most common
baseline that is marketed as "broadband" around the world. There is no
specific bitrate defined by the industry, however, and "broadband" can mean
lower-bitrate transmission methods. Some Internet Service Providers (ISPs)
use this to advantage, in marketing lower-bitrate connections as broadband.
As the bandwidth delivered to end-users increases, the market expects that
video on demand services streamed over the Internet will become more
popular, though at the present time such services generally require
specialised networks. The data rates on most broadband services still do not
suffice to provide good quality video, as MPEG-2 quality video requires about
50

6 Mbit/s for good results. Adequate video for some purposes becomes
possible at lower data rates, with rates of 768 kbit/s and 384 kbit/s used for
some video conferencing applications. The MPEG-4 format delivers high-
quality video at 2 Mbit/s, at the high end of cable modem and ADSL
performance. The Ogg Tarkin format is intended to deliver similar
performance.
One of the great challenges of broadband is to provide service to potential
customers in areas of low population density, such as to farmers and
ranchers. In cities where the population density is high, it is easy for a service
provider to recover equipment costs, but each rural customer may require
thousands of dollars of equipment to get connected. A similar problem existed
a century ago when electrical power was invented. Cities were the first to
receive electric lighting, as early as 1880, while in the United States some
remote rural areas were still not electrified until the 1940's, and even then only
with the help of federally-funded programs like the Tennessee Valley Authority
(TVA). India is rapidly transforming itself from a bandwidth deficient country
to a bandwidth surplus country. Per capita bandwidth availability in India is as
low as 11.83 Kbps or even lesser. Today, India receives 3 Gbps of
international bandwidth but demand in the short term is in the range of 100
Gbps. Increased availability of international bandwidth through various
sources, especially submarine cable, will be the key to solving the bandwidth
deficiency being faced by the country. Optimum utilization of this bandwidth
and creation of domestic bandwidth is being addressed through major
investment, by both private and government players, in wiring up the country.
Availability of a bouquet of last mile and access solutions will make bandwidth
increasingly attractive to end-users. Increasing penetration of the Internet
and Application Service Providers (ASPs), industry friendly government
policy, bandwidth hungry applications, will be key growth generators for the
bandwidth market. Foreign service and equipment companies do not face any
discrimination vis-à-vis local companies, and, in fact, have technological and
geographical competitive advantages.
India is transforming rapidly from a bandwidth deficient country to a bandwidth
surplus country. Per capita bandwidth availability in India is as low as 11.83
51

Kbps or even lesser. Today, India receives 3 Gbps of international bandwidth
but demand in the short term is in the range of 100 Gbps. Increased
availability of international bandwidth through various sources, especially
submarine cable, will be the key to solving the bandwidth deficiency being
faced by the country. Optimum utilization of this bandwidth and creation of
domestic bandwidth is being addressed through major investment, by both
private and government players, in wiring up the country. Availability of a
bouquet of last mile and access solutions will make bandwidth increasingly
attractive to end-users. Increasing penetration of the Internet and Application
Service Providers (ASPs), industry friendly government policy, bandwidth
hungry applications, will be key growth generators for the bandwidth market.
Foreign service and equipment companies do not face any discrimination vis-
à-vis local companies, and, in fact, have technological and geographical
competitive advantages.
Until a few years ago India was a bandwidth deficient country. Bandwidth
availability was less than one percent of the requirement. To maintain even
the current level of growth in software and other sectors, capacity would have
to be improved at least a 100 fold in the next five years. Bandwidth deficiency
was considered, by local industry and government, as one of the biggest
stumbling blocks on the road towards India becoming a Information
Technology (IT) superpower. The IT Industry in India is one of the largest
export earners, which has put the country on the global industry map, and has
created a large job pool for the countries large unemployed population. Till
recently, the India bandwidth market was a monopoly market with the Indian
Government-run Videsh Sanchar Nigam Limited (VSNL) being the only
service provider, which was not able to fulfil the bandwidth requirement. The
Government was forced to set up institutions such as the Bandwidth Advisory
Committee consisting of leading individuals within the IT and
telecommunications industries to advise the Department of
Telecommunication (DoT) on addressing the bandwidth issue. These bodies
that had representation from both government and industry formulated plans
to develop the bandwidth infrastructure in the country. Many of the
recommendations proposed in these plans were subsequently converted into
law. In 1997, in response to frequent complaints about lack of access and low
52

performance of the existing backbone, the DoT decided to deploy a large-
scale, nationwide Internet backbone (NIB) at a projected cost of
approximately US$ 100 million. The NIB would not only address the
immediate access and performance concerns, but could also be scaled to
accommodate future needs with respect to capacity, coverage, and
management. The project was divided into two Phases. Phase I was finally
completed in July 2001. While the DoT, Bharat Sanchar Nigam Limited
(BSNL), and VSNL, which was recently privatized, continue to lay additional
fiber-optic cable for their backbones, a considerable number of other private
and state owned organizations are trying to capitalize on the growing demand
for bandwidth by laying their own fiber-optic networks. The big players among
these are the Reliance Infocom and Bharti Telesonic. These bandwidth
enhancement efforts are being encouraged by the national and state
governments through direct investment, and the passage of measures to
resolve critical right-of-way issues. The cooling of the Internet market in 2001
has, however, lead to the scaling back, or canceling of a number of ambitious
plans for laying new fiber. ossible alternatives to the domestic backbone
mentioned above are the fiber networks that have been laid by the Indian
Railways, the National Power Grid Corporation, and State Electricity Boards.
Each of these organizations has existing fiber optic networks with excess
capacity and ambitious plans to install fiber optic backbones for commercial
purposes.
Estimates indicate that by the end of 2002, India would have a supply of
around 100 Gbps of International bandwidth on the submarine cable front,
which is 30 times the bandwidth currently available. Industry sources estimate
that currently India’s total international bandwidth is approximately 3 Gbps.
With bandwidth networks such as SAFE, Network i2I, and FLAG becoming
operational, along with the existing cable such as SEA-ME-WE-2 and SEA-
ME-WE-3, bandwidth will be easier to procure. On the satellite front, all major
International players, such as Intelsat, Eutelsat, Panamasat, New Skies,
Europe Star, CyberStar, AsiaStar, Thaicom, and Measat are present in India.
The dominant form of access for end users will continue to be dial-up for
several years. Dial-up is followed by Integrated Services Digital Network
53

(ISDN) and Digital Subscriber Line (DSL) as the most popular access
options. DSL currently enjoys limited availability compared to ISDN, although
it is emerging as a popular access method for Internet Service Providers
(ISPs). One of the more attractive access options, unrealized at present, is
the provision of Internet service via the cable television infrastructure. More
homes in India enjoy cable service than telephone service. Second, the
quality of the cables is better than the quality of the existing telephone
connections. Third, there is a severe lack of leased line and high-speed dial-
up access to the Internet in the country.
ISPs are offering Internet-over-cable service in select cities, or are planning to
do so over the next few months. Frost & Sullivan predict that cable
connections will carry 24 percent of Internet traffic by the year 2005. There
are, however, major barriers to the broad penetration of Internet access via
cable modems, including the high cost of cable modems and service.
Nevertheless, for high usage customers such as small businesses and cyber
cafes, cable-based Internet access is an attractive option. Dial-up access will
continue to dominate in India in the near future; however, major increases
may be seen in access through cable modems and DSL, particularly for
organizational users, who will use these methods in place of leased lines.
The market for broadband access in India is one of the most dynamic markets
in the telecommunication market space. Due to the economic slowdown and
lack of awareness of the benefits of this technology, broadband has not
picked up as expected. International Data Corporation (IDC) in its report titled,
" Broadband Equipment Market Forecast and Analysis 2001 – 2005 " predicts
a healthy growth rate for different broadband access technologies. IDC
expects Fixed Wireless access (FWA) and satellite broadband access to be
the front runner in the broadband access market ahead of alternative
technologies such as cable and DSL. Real competition has just begun in the
broadband marketplace with FWA as a late-market entrant. FWA is an
increasingly attractive alternative since it allows competitive providers to
bypass the local loop generally controlled by incumbent carriers. Moreover,
FWA is well suited to installations in rural and remote locations because of its
wireless infrastructure and ability to reach customers not served by DSL or
cable modem services. The FWA will have a major chunk of the Indian
54

broadband pie. There will be lot of investments for increasing the
infrastructure next year and on an overall level a healthy growth rate is
expected in the total equipment market. Satellite is one of the unexplored
broadband access technologies that has immense potential not only in terms
of direct to Personal Computer (PC) connectivity but also multicasting and ISP
links. The satellite direct access market is expected to acquire a sizeable
chunk of the broadband access market India due to the fact that is ubiquitous
in nature and enterprise demand for high speed fat data pipe. A lot of issues,
which are a hindrance for other broadband access technology, can be
bypassed by using satellite as a broadband technology.
RESEARCH METHODOLOGY
PROBLEM DEFINITION /HYPOTHESIS /RESEARCH OBJECTIVES
This paper reviews the unique features of new communication media and the
way it have shifted the balance of bargaining power on the market of Religare
products. Through the wide range of theoretical and empirical arguments the
paper builds the logical bridge between the new business requirements and
the importance of developing relationship marketing perspective. Major focus
of this project will be on these two parts
• To find out the awareness among the company about internet
marketing.
• To find willingness among consumers about making purchase on
internet
LITERATURE RELATED TO THE RESEARCH (IN BRIEF)
The E-commerce further leads to the emergence of the ''market space'' - a
virtual world of information paralleling the real marketplace of goods and
services - enables marketers to manage content, context, and infrastructure in
new and different ways, thereby providing novel sources of competitive
55

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