CHAPTER 1

COMPANY PROFILE
1.1 Introduction of Idea Company
IDEA Cellular Limited was incorporated in 1995 and is one of the leading GSM
mobile services operators. Headquartered in Mumbai, it has licenses to operate in
all 22 service areas across the
country,though commercial operations are currently in 16 services areas.With a
customer base of over 47.1 million subscribers, the
operationscover the states of Maharashtra, Goa, Gujarat, Rajasthan, Delhi,Haryana,
Himachal Pradesh, Uttaranchal, Uttar Pradesh, MadhyaPradesh, Chhattisgarh,
Andhra Pradesh, Kerala, and Bihar. Orissa, and Tamil Nadu will become operational
during 2008-09, and Idea
willthen cover approximately 90 per cent of the countrys telephonypotential.IDEA
enjoys a market leadership position in many of its operational areas. It offers GPRS
on all its operating networks for all categories
of subscribers, and was the first company in India to commerciallylaunch the next
generation EDGE technology in Delhi in 2003. As
apioneer in technology deployment, it has been in the forefrontthrough the adoption
of bio fuels to power its base stations, and by employing satellite connectivity to
reach inaccessible rural areas in Madhya Pradesh. IDEA has been a leader in the
introduction of value added services, and there are several firsts to its credit,
including a voice portal Say Idea, Idea TV, voice chat, instant messenger, and
many more. Tariff plans have been customer friendly, catering to the unique needs
of different customer segments, where Womens Card caters to the special needs
of the woman on the move, and Youth Card covers the emerging youth segment.
IDEA has won numerous awards and is the only Indian GSM operator to win the
prestigious GSM Association Award consecutively in the best mobile technology
category for the Best Billing and Customer Care Solution both in 2006 and in 2007
in the face of international competition. In 2007 IDEA was listed on
theNational Stock Exchange (NSE) and the Bombay Stock Exchange(BSE).

About IDEA Cellular Limited

A leading GSM mobile services operator, Idea Cellular has licenses to operate in all
22 service areas of India with commercial operations

in11 service areas. With a customer base of over 26 million, IdeaCellular runs operat
ions in Delhi, Himachal Pradesh, Rajasthan, Haryana, Uttar Pradesh (East), Uttar
Pradesh (West) & Uttaranchal, Madhya Pradesh&
Chhattisgarh, Gujarat, Maharashtra & Goa, Andhra Pradesh, and
Kerala, holds spectrum for Mumbai, Bihar, Orissa, Tamil nadu (including Chennai),
and Karnataka, and licenses for the remaining 6service areas. With the planned
launch of services in Mumbai, Bihar and Jharkhand in Q3, and Orissa and Tamil nadu
(including Chennai) towards the end of the calendar year, Ideas footprint will soon
cover approximately 90% of Indias telephony potential. Idea is listed on the
National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) in India.

Registered Address:
Suman Tower, Plot No. 18,, Sector-11,Gandhinagar, Gujarat: 382011

Corporate Office:
11/1, Sharada Center Off Karve Road Pune 411004 Maharashtra - India

1.2 History of Idea

Idea Cellular was incorporated as Birla
Communications Limited onMarch 14, 1995 and granted a certificate of commence
ment of business on August 11, 1995. Its registered office was in Mumbai,
Maharashtra. Its name was changed to Birla AT&T Communications Limited on May
30, 1996 following the execution of a joint venture agreement dated December 5,
1995 between AT&T Corporation and Grasim Industries Limited pursuant
to which the Aditya Birla Group held 51% of its Equity Share capital and AWS Group
held 49% of
itsEquity Share capital. The registered office was transferred fromIndustry House,
1st Floor, 159 Church Gate Reclamation, Mumbai
400020, Maharashtra to Suman Tower, Plot No. 18, Sector 11,Gandhi nagar 382011
Gujarat on October 22, 1996. With effect from January 1, 2001 following merger
with Tata Cellular Limited the joint venture agreement between AT&T Corporation
and Grasim Industries Limited dated December 5, 1995 was replaced
by a share holders agreement dated December 15, 2000 entered into between
Grasim Industries Limited on behalf of the Aditya Birla Group, Tata Industries
Limited on behalf of the Tata Group and AT&T Wireless Services Inc. on behalf of the
AWS Group following which its name was changed to Birla Tata AT&T Limited on
November 6, 2001. Consequent to
theintroduction of the Idea brand, its name was changed to IdeaCellular
Limited on May 1, 2002. The AWS Group
exited from theCompany on September 28, 2005 by selling 371,780,740 EquityShar
es of the Company, which constituted 50% of the holding of AT&T Cellular Private
Limited in equity share capital, to ABNL and
bytransferring the remaining 371,780,750 Equity Shares to TataIndustries Limited.
The Tata Group ceased to be a shareholder of the Company on June 20, 2006 when
Tata Industries limited and
ApexInvestments (Mauritius) Holding Private Limited (formerly known asAT&T
Cellular Private Limited) sold all their shares in the Company to
the Aditya Birla Group. On October 26, 2006, P5 Asia Investments(Mauritius) Limited
(P5 Asia) acquired 14.60% of our Equity
Sharecapital. Under a Governance and Exit Rights Agreement datedOctober 23,
2006 between P5 Asia, ABNL and Birla TMT, so long as an initial public offering has
not occurred and P5 Asia holds no less than10% of Equity Shares, ABNL and Birla
TMT are required to procure that (a) Company and its Subsidiaries shall not take or
pursue any of the following actions without P5 Asias prior consent (such consent to
be obtained in a board and/or shareholders resolution) including in respect of (i) Any
merger with, acquisition of, or amalgamation or
consolidationwith another company or business; (ii) assuming or permitting toexist
any borrowings or indebtedness in the nature of borrowings if the amount of all
such borrowings of Company and
its Subsidiarieswould exceed Rs. 6,800 million; (iii) entering into a new line of

business; (iv) increasing our authorized or issued share capital; or (v)entering into a
joint venture and (b) our Company makes available toP5 Asia certain financial
information relating to our Company and
itsSubsidiaries such as monthly management accounts, quarterlyunconsolidated
balance sheet and profit and loss account and
theannual audited consolidated balance sheets and profit and lossaccounts. P5 Asia
also has a right to appoint one director to
ourBoard so long as it holds at least 10% of our total issued andoutstanding Equity
Shares. Mr. Biswajit Subramanian has beenappointed to our Board by P5 Asia
pursuant to the exercise of the above right. In addition, any IPO of our Equity
Shares requires P5Asias written consent, and, further, in any such IPO, P5 Asia has
the right to offer for sale such number of Equity Shares representing up to 10% of
the total Equity Shares which are held by it. By its letters dated December 2, 2006
to ABNL and Birla TMT, P5 Asia has given its written consent for the Issue and
has confirmed that it does not intend to offer for sale any of the Equity
Shares held by it in such Issue. We, either directly or through our Subsidiaries,
provide
mobileservices in the Andhra Pradesh, Delhi, Gujarat, Haryana, Kerala,Madhiya
Pradesh, Maharashtra and Uttar Pradesh (West) Circles, and have recently launched
services and as such are in the process of fully rolling-out our network in the Uttar
Pradesh (East), Himachal Pradesh Circles pursuant to licenses issued by the DoT.
MAJOR EVENTS
The chronology of key events of the Company from incorporation is set out below:
1995:
Incorporated as Birla Communications Limited Obtainedlicenses for providing GSMbased services in the Gujarat andMaharashtra Circles following the original GSM lice
nse biddingprocess
1996:
Changed name to Birla AT&T Communications Limitedfollowing joint venture betwee
n Grasim Industries and AT&TCorporation
1997:
Commenced operations in the Gujarat and Maharashtra Circles
1999:
Migrated to revenues share license fee regime under New Telecommunications
Policy (NTP)
2000:

Merged with Tata Cellular Limited, thereby acquiring original license for the Andhra
Pradesh Circle.
2001:
Acquired RPG Cellular Limited and consequently the license for the Madhya Pradesh
(including Chattisgarh) Circle Changed name to Birla Tata AT&T Limited
2001:
Obtained license for providing GSM-based services in the Delhi Circle following the
fourth operator GSM license bidding process

2002:
Changed name to Idea Cellular Limited and launched
Ideabrand name Commenced commercial operations in Delhi Circle,Reached the
one million subscriber mark
2003:
Reached the two million subscriber mark
2004:
Completed debt restructuring for the then existing debtfacilities and additional
funding for the Delhi Circle. Acquired
EscotelMobile Communications Limited (subsequently renamed as IdeaMobile Com
munications Limited) First operator in India tocommercially launch EDGE services
2005:
Reached the five million subscriber mark, Turned profitpositive Won an award for the
Bill Flash service at the GSMAssociation Awards in Barcelona, Spain Sponsored the
International Indian Film Academy Awards
2006:
Became part of the Aditya Birla Group subsequent to the
TATAGroup transferring its entire shareholding in the Company to theAditya Birla Gro
up Acquired Escorts Telecommunications Limited(subsequently renamed as Idea
Telecommunications Limited)

1.3 Future Perspective

IDEA Cellular announced the launch of its GSM mobile services in Chennai
IDEAs 2.75G EDGE enabled network will now cover entire Chennai Metro, in
addition to its expanding network coverage in the Rest of Tamil Nadu. The warm
yellow of IDEA logo, symbolizing strength, vibrancy and vitality, will now be seen
across the rural and urban landscape of the state, including Chennai Metro. Chennai
Metro, with a population of 7.2 million and teledensity of over 130% is a strategic
market in the South. With 25% of its overall subscriber base coming from three
service areas of Kerala, Andhra Pradesh and Karnataka, IDEA is a strong player in
the South, and will ever age this strength to become the Operator of Choice for
mobile users in the region. IDEA plans to set up a network of 2400 cell sites across
Tamil Nadu &Chennai, covering 1200 towns by the end of March 10.According to Mr.
Sanjeev Aga, Managing Director, IDEA Cellular said, Chennai is a strategic market
for IDEA, and we are happy to launch

our services in this metro city. This not only provides us a platform to further
strengthen our market position in the South, but is also a key milestone in our
national roll-out plan. IDEA Cellular, an Aditya Birla Group Company covers
90% of the telephony potential of the country, and is the 3rd largest private GSM
player with over 47 million subscribers across 18 telecom
circles.Speaking on the occasion of launch of services in the city, Mr.Himanshu Kapa
nia, Director - Operations, IDEA Cellular Ltd., said,IDEA aims to provide the citizens
of Chennai and other parts of Tamil Nadu, superior connectivity, whisper clear audio
quality, zerocall congestion and high capacity, ahead of time. IDEAs 2.75Gcapable
& 3G ready core network provides for all future technological enhancements. We
welcome the people of Chennai and other towns and villages of Tamil Nadu to join
IDEAs pan-India
network.IDEA will develop customer service with a robust retail networkcomprising
of exclusive My Idea Stores, Idea Points and otheroutlets. The service network will
be expanded to over 25,000
retailoutlets and 60 IDEA showrooms in the state, shortly. Aimed atachieving
visibility and real time experience, these customer touch points will significantly
enhance IDEAs distribution network and help

CHAPTER 2
PROJECT
INTRODUCTION
2.1 PROJECT INTRODUCTION
In todays scenario the telecom industry is booming sector which is least affected by
the recession even though the telecom industry facing huge competition. There are
many new operators coming in to the market so the operators which are already in
the market have todesign their marketing strategies in such a way that they could
survive this tough competition. Every MBA student has to undergo Summer
Internship Program (SIP)as a curriculum activity to get the knowledge of real market
where they have to work in future. The main aim behind this program is that
students get some experience with which they could get assistance while searching
their jobs. I got the opportunity to complete my SIP in CELL CONCEPT, WARDHA for
two months in the field of Marketing of Idea Postpaid Services. Idea cellular is one of
the leading Telecom Operator in Telecom sector in India. I did the marketing of
postpaidservices provided by the Idea in different sectors like banking,Government
sectors, various companies, etc. I got the experience how to promote the product in
these areas. I also collect responses of various customers to the services they are
already using.
2.2 MEANING OF MARKETING
Marketing is defined by the American Marketing Association
asthe activity, set of institutions, and processes for creating,communicating,
delivering, and exchanging offerings that have value for customers, clients,
partners, and society at large.
Theterm developed from the original meaning which referredliterally to going to mar
ket, as in shopping, or going to amarket to sell goods or services.
2.3 DEFINITION OF MARKETING
Marketing is the performance of business activities that directthe flow of goods
and services from producers to consumers
Marketing is the process of planning and executing theconception, pricing,
promotion, and distribution of ideas, goods, and services to create exchanges that
satisfy individual and organizational objectives

 Marketing is an organizational function and a set of processes for creating,

communicating and delivering value to customers and for managing customer
relationships in ways that benefit the organization and its stakeholders.
Marketing is the activity, set of institutions and processes for creating,
communicating, delivering, and exchanging offerings that have value for customers,
clients, partners, and society at large.
Marketing is the activity, set of institutions, and processes for creating,
communicating, delivering, and exchanging offerings that have value for customers,
clients, partners, and society at large.
Marketing research is the function that links the consumer,customer, and public to
the marketer through information:information used to identify and define marketing
opportunitiesand problems; generate, define, and evaluate marketingactions; monit
or marketing performance; and improveunderstanding of marketing as a process.
Marketing research specifies the information required toaddress these issues, desig
ns the method for collectinginformation, manages and implements the data collecti
onprocess, analyzes the result, and communicates and findings and their
implications.