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Project Report

Idea Cellular is the 4th largest mobile network operator in India with over 100 million subscribers. It operates across 22 service areas providing 2G and 3G services. Idea began as Birla Communications in 1995 and over the years has acquired various mobile operators to become a pan-India integrated GSM operator. It is currently owned 46.97% by the Aditya Birla Group and 19.1% by Axiata Group Berhad.

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0% found this document useful (0 votes)
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Project Report

Idea Cellular is the 4th largest mobile network operator in India with over 100 million subscribers. It operates across 22 service areas providing 2G and 3G services. Idea began as Birla Communications in 1995 and over the years has acquired various mobile operators to become a pan-India integrated GSM operator. It is currently owned 46.97% by the Aditya Birla Group and 19.1% by Axiata Group Berhad.

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Anuj Gupta
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INTRODUCTION OF COMPANY

Idea Cellular, usually referred to as Idea, is an Indian mobile network operators based in Mumbai, India. Idea is the 4th largest wireless carrier in Indian market with over 100 million customers and also provides broadband Internet to its customers IDEA Cellular is a publicly listed company, having listed on BSE & NSE in March 2007. It is the 3rd largest mobile services operator in India with wireless revenue market share at 13.9 % in Q1 FY2012. Idea has join the select global operators club servicing over 100 million subscribers, as of September 2011. Idea is a pan-India integrated GSM operator and has its own NLD and ILD operations, and ISP license. With traffic in excess of a billion minutes a day, Idea ranks among the Top 10 country operators in the world. Idea operates across all 22 service areas with 2G services, and 3G services are being progressively rolled out to cover over 3,000 towns by FY 2012. Idea has a network of over 70,000 cell sites covering the entire length and breadth of the country. Idea has over 3,000 Service Centres servicing Idea subscribers across the country, including 450 special Experience Zones for 3G promotion. Ideas service delivery platform is ISO 9001:2008 certified, making it the only operator in the country to have this standard certification for all 22 service areas and the corporate office. Ideas strong growth in the Indian telephony market comes from its deep penetration in non-urban & rural markets. It has the highest share of rural subscribers as a percentage of total subscribers, amongst other GSM players. In fact, 2 out of every 3 new Idea subscribers come from rural/ semi-urban India. Idea is the winner of The Emerging Company of the Year Award at The Economic Times Corporate Excellence Awards 2009. IDEA Cellular also received the prestigious Avaya GlobalConnect Award for being the Most Customer Responsive Company in the Telecom sector in the year 2010. The company has received several other national and international recognitions for its path-breaking innovations in mobile telephony products & services. It won the GSM Association Award for Best Billing and Customer Care Solution for 2 consecutive years. It was awarded Mobile Operator of the Year Award India for 2007 and 2008 at the Annual Asian Mobile News Awards. IDEA Cellular is an Aditya Birla Group Company, Indias first truly multinational corporation. The group operates in 33 countries, and is anchored by more than 132,000 employees belonging to 42 nationalities. Initially the Birlas, the Tatas and AT&T Wireless each held one-third equity in the company. But following AT&T Wireless' merger with Cingular Wireless in 2004, Cingular decided to sell its 32.9% stake in Idea. This stake was bought by both the Tatas and Birlas at 16.45% each. Tata's foray into the cellular market with its own subsidiary, Tata Indicom, a CDMA-based mobile provider, cropped differences between the Tatas and the Birlas. This dual holding by the Tatas also became a major reason for the delay in Idea being granted a license to operate in Mumbai.

This was because as per Department of Telecommunications (DOT) license norms, one promoter could not have more than 10% stake in two companies operating in the same circle and Tata Indicom was already operating in Mumbai when Idea filed for its license. The Birlas thus approached the DOT and sought its intervention, and the Tatas replied by saying that they would exit Idea but only for a good price. On 10 April 2006, the Aditya Birla Group announced its acquisition of the 48.18% stake held by the Tatas at Rs. 40.51 a share amounting to Rs. 44.06 billion. While 15% of the 48.14% stake was acquired by Aditya Birla Nuvo, a company in-charge of the Birlas' new business initiatives, the remaining stake was acquired by Birla TMT holdings Private Ltd., an AV Birla family-owned company. Currently, Aditya Birla Group holds 49.1% of the total shares of the company. Malaysia based Axiata controls a 14.99% stake in the company. Idea competes with 14 other mobile operators throughout India. They are Aircel, Airtel, BSNL, Loop Mobile, MTNL, MTS, Ping Mobile, Reliance Communications, S Tel, Tata DoCoMo, Tata Indicom, Uninor, Videocon, Virgin Mobile and Vodafone.

HISTORY OF COMPANY
1995

Incorporated as Birla Communications Limited Obtained licenses for providing GSM-based services in the Gujarat and Maharashtra Circles following the original GSM license bidding process. We are part of the Aditya Birla Group and all our Promoters are companies belonging to the Aditya Birla Group.

1996 Changed name to Birla AT&T Communications Limited following joint venture between Grasim Industries and AT&T Corporation

1997 1999 2000 Merged with Tata Cellular Limited, thereby acquiring original license for the Andhra Pradesh Circle Migrated to revenues share license fee regime under New Telecommunications Policy ("NTP") Commenced operations in the Gujarat and Maharashtra Circles MoU for merger between Birla AT&T and Tata Cellular Limited Andhra Pradesh signed (Jan)

2001 2002 Changed name to Idea Cellular Limited and launched "Idea" brand name Commenced commercial operations in Delhi Circle Reached the one million subscriber mark Brand IDEA launched Delhi operations commence (Nov) Acquired RPG Cellular Limited and consequently the license for the Madhya Pradesh (including Chattisgarh) Circle Changed name to Birla Tata AT&T Limited Obtained license for providing GSM-based services in the Delhi Circle following the fourth operator GSM license bidding process Acquired RPG Cellcom, service provider in Madhya Pradesh (Feb) Awarded

2003 2004 Completed debt restructuring for the then existing debt facilities and additional funding for the Delhi Circle. Acquired Escotel Mobile Communications Limited (subsequently renamed as Idea Mobile Communications Limited) Reached the four million subscriber mark First operator in India to commercially launch EDGE services 2005 Acquired Escotel, incumbent cellular service provider in Haryana, UP(W) & Kerala and new licensee in HP 2005 2006 Subscriber base as on December 31, 2006: 12,442,450 Became part of the Aditya Birla Group subsequent to the TATA Group transferring its entire shareholding in the Company to the Aditya Birla Group Acquired Escorts Telecommunications Limited (subsequently renamed as Idea Telecommunications Limited) Restructuring of debt Launch of the New Circles Reached the 10 million subscriber mark Received Letter of Intent from the DoT for a new UAS License for the Mumbai Circle. Received Letter of Intent from the DoT for a new UAS License for the Bihar Circle through Aditya Birla Telecom Limited. ABNL, the parent of Aditya Birla Telecom Limited, pursuant to a letter dated November 22, 2006, agreed to transfer its entire shareholding in Aditya Birla Telecom Limited to the Company for the consideration of Rs. 100 million Subscriber base as on December 31, 2005: 6,473,962 Reached the five million subscriber mark Turned Profit Positive Won an Award for the "Bill Flash" service at GSM Association Awards in Barcelona, Spain Sponsored the International Indian Film Academy Awards Reached the two million subscriber mark

2007 2008 2009 2010 Subscriber base as on December 31, 2010: 81,778,655 Idea won 3G Spectrum in 11 service areas in India. These markets account for over 81% of the companys total revenue Idea crossed usage of One Billion Minutes per day on the network, propelling it amongst the Top 10 country operators in the world Idea emerged as the 3rd largest mobile operator in India, in revenue terms. Subscriber base as on December 31, 2009: 57,611,872 Idea becomes a pan-India operator Emerging Company of the Year - fastest growing mobile operator in the worlds fastest growing telecom market Becomes pan-India operator in 2009 Subscriber base as on December 31, 2008: 40,016,153 Idea acquired 9 licences for Punjab, Karnataka, Tamil Nadu & Chennai, West Bengal, Orissa, Kolkata, Assam, North East and Jammu & Kashmir Acquired Spice Communications with the operating circles of Punjab and Karnataka Launched services in Mumbai metro in the largest single metro city launch, ever Launched services in Bihar Subscriber base as on December 31, 2007: 21,054,027 Won an award for the "CARE" service in the "Best Billing or Customer Care Solution" at the GSM Association Awards in Barcelona, Spain Initial Public Offering aggregating to Rs. 28,187 million and Listing of Equity Shares on the Bombay Stock Exchange and the National Stock Exchange Merger of seven subsidiaries with Idea Cellular Limited Reached the twenty million subscriber mark

ABOUT PRODUCTS/SERVICES

VOICE SERVICES Fixed Cellular Terminals GSM PRI Gateway Call Conference

GPRS APPLICATION Internet On Mobile Idea NetSetter USB

BUSINESS APPLICATION Remote Energy Work Force Tracking Solution Vehicle Tracking Solution

CUSTOMIZED SOLUTIONS

SMS/GPRS Based Solutions

A. PROMOTER GROUP
Idea is part of the Aditya Birla Group, a US$ 29 billion corporation. The Aditya Birla Group is in the League of Fortune 500 and has businesses in sectors ranging from metals, garments, cement, fertilisers, life insurance and financial services among others. Over 60% of Groups revenues are derived from overseas operations. The group operates in 26 countries, and is anchored by an extraordinary force of over 130,600 employees belonging to 40 nationalities. The current Group holding of 46.97% in Idea is made up of; Aditya Birla Nuvo Ltd. Birla TMT Holdings Pvt. Ltd. Hindalco Industries Ltd. Grasim Industries Ltd. Others Total 25.37% 8.59% 6.92% 5.18% 0.91% 46.97%

B. KEY SHAREHOLDERS
Axiata Group Berhad (previously TM International Berhad), through its affiliates, has 19.1% shareholding in Idea Cellular. Axiata is one of the largest Asian telecommunication companies focused on high growth low penetration emerging markets. Axiata has controlling stakes in its affiliates in Malaysia, Indonesia, Sri Lanka, Bangladesh and Cambodia, and significant stakes in India, Singapore and Iran. The Group, including its subsidiaries and associates, has over 130 million mobile subscribers in Asia and provides employment to over 25,000 people across Asia. Providence Equity Partners, through its affiliates has a 10% shareholding in Idea, and has also invested INR 20,982 mn in ABTL through Compulsorily Convertible Preference Shares.

C. CORPORATE STRUCTURE
Idea Cellular Limited (Idea) 100% -- Idea Cellular Infrastructure Services Limited (ICISL) 100% -- Idea Cellular Services Limited (ICSL) 100% -- Swinder Singh Satara & Co Limited (SSSL) 100% -- Carlos Towers Limited (Carlos) 100% -- Aditya Birla Telecom Limited (ABTL)

100% -- Idea Cellular Towers Infrastructure Limited (ICTIL) 16% -- Indus Towers Limited (Indus)

STOCKHOLDERS ICISL A tower company owning towers in Bihar and Orissa service areas. ICSL Provides manpower services to Idea. SSSL Engaged in the business of sale and purchase of Data Cards, Mobile Hand Sets and Fixed Wireless Phones. Carlos Acquired through amalgamation of Spice Communications Ltd into Idea and presently not having any operations. ABTL Holds 16% shareholding in Indus. ICTIL Holds towers de-merged from Idea, which will subsequently merge into Indus. Indus A joint venture between Bharti Infratel, Vodafone Essar and Idea (through ABTL), to provide passive Infrastructure services in 15 service areas. Idea was awarded 3G spectrum in 11 important service areas, where it is in the process of rolling out extensive 3G networks. While these areas cover ~ 50% of the Indian telecom sector revenue, they constitute ~80% of Ideas revenue. The 3G spectrum footprint of Idea covers all 8 service areas where Idea is # 1, #2 or #3. Ideas existing and new spectrum footprint places Idea in an advantageous competitive position.

MANAGEMENT DISCUSSION & ANALYSIS


Quality Operations in a Hyper-Competitive Phase The last 18 months have seen fierce competition due to the entry of new operators, into an already crowded Indian wireless sector. The over-capacity and hyper-competition thereof has resulted in the reduction of the Average Realised Rate per Minute from 58p to 42p (for Idea). However, in the same period, the Cost per Minute has reduced from 44p to 35p, and this after absorbing the start-up costs of 9 newly launched service areas. Quality operations, evolved and efficient processes, and brand power are mitigating the impact of price reduction. Idea is among very few companies which have the capability to maintain and grow quality operations at a realised rate of 42p, and still turn in reasonable profits. This is a strong affirmation of Ideas ability to ride out these testing times, and to emerge competitively enhanced once this phase of overcapacity draws inevitably to a close.

SECTOR 2 AIRTEL BHARTI


HISTORY OF COMPANY Bharti Airtel is one of India's leading private sector providers of telecommunications services based on an aggregate of 66,689,943 customers as on April 30, 2008, consisting of 64,370,434 GSM mobile and 2,319,509 Bharti Telemedia subscribers. The businesses at Bharti Airtel have been structured into three individual strategic business units (SBUs) - mobile services, telemedia services (ATS) & enterprise services. The mobile services group provides GSM mobile services across India in 23 telecom circles, while the ATS business group provides broadband & telephone services in 94 cities. The enterprise services group has two sub-units carriers (long distance services) and services to corporates. All these services are provided under the Airtel brand. Company shares are listed on The Stock Exchange, Mumbai (BSE) and The National Stock Exchange of India Limited (NSE). The company has a strategic alliance with SingTel. The investment made by SingTel is one of the largest investments made in the world outside Singapore, in the company. The companys mobile network equipment partners include Ericsson and Nokia. In the case of the broadband and telephone services and enterprise services (carriers), equipment suppliers include Siemens, Nortel, Corning, among others. The Company also has an information technology alliance with IBM for its group-wide information technology requirements and with Nortel for call center technology requirements. The call center operations for the mobile services have been outsourced to IBM Daksh, Hinduja TMT, Teletech & Mphasis.

MILESTONE OF COMPANY Mobile phone operator, Bharti Airtel, became the first Indian telecom company to serve 50 million customers last month, and is now the worlds tenth largest wireless carrier. Bharti has doubled its user base in the past 14 months alone, and hopes to reach 100 million subscribers by 2010, according to company executives. Our next 50 million will largely come from rural India as our plan is to reach 5,200 census towns and over five lakh villages, covering 96 per cent of the Indian population, said Bharti Airtel president and CEO, Manoj Kohli, at a news conference this week.

Airtel comes to you from Bharti Tele-Ventures Limited - a part of the biggest private integrated telecom conglomerate, Bharti Enterprises. A consortium of giants in the telecommunication business. In it's six years of pursuit of greater customer satisfaction, AirTel has redefined the business through marketing innovations, continuous technological up gradation of the network, introduction of new generation value added services and the highest standard of customer care. Bharti is the leading cellular service provider, with an all India footprint covering all 23 telecom circles of the country. It has over 12 million satisfied customers. Cellular telephony was introduced in India during the early 1990s. At that time, there were only two major private players, Bharti (Airtel) and Essar (Essar) and both these companies offered only postpaid services. Initially, the cellular services market registered limited growth.

BHARTIS MISSION
To be globally admired for telecom services that delight customers. We will meet global standards for telecom services that delight customers through: Customer Service Focus Empowered Employees Cost Efficiency Unified Messaging Solutions Innovative products and services Error- free service delivery .

THE COMPOSITION OF THE BOARD IS AS UNDER: Sunil Bharti Mittal Rajan Bharti Mittal Akhil Gupta Rakesh Bharti Mittal Chua Sock Koong N. Kumar Kurt Hellstorm Donald Cameron Paul OSullivan Professor V.S. Raju Pulak Chandan Prasad Bashir Abdullah Currimjee Gavin Darby Syeda Imam Ajay Lal York Chye Chang Paul Donovan

SECTOR 3 BSNL

INTRODUCTION
Bharat Sanchar Nigam Limited (known as BSNL, India Communications Corporation Limited) is a public sector telecommunication company in India. Bharat Sanchar Nigam Ltd. formed in October, 2000, is World's 7th largest Telecommunications Company providing comprehensive range of telecom services in India: Wireline, CDMA mobile, GSM Mobile, Internet, Broadband, Carrier service, MPLSVPN, VSAT, VoIP services, IN Services etc. Within a span of five years it has become one of the largest public sector unit in India. BSNL has installed Quality Telecom Network in the country and now focusing on improving it, expanding the network, introducing new telecom services with ICT applications in villages and wining customer's confidence. Today, it has about 47.3 million line basic telephone capacity, 4 million WLL capacity, 20.1 Million GSM Capacity, more than 37382 fixed exchanges, 18000 BTS, 287 Satellite Stations, 480196 Rkm of OFC Cable, 63730 Rkm of Microwave Network connecting 602 Districts, 7330 cities/towns and 5.5 Lakhs villages. It is India's largest telecommunication company with 24% market share as on March 31, 2008. Its headquarters are at Bharat Sanchar Bhawan, Harish Chandra Mathur Lane, Janpath, New Delhi. It has the status of Mini Ratna, a status assigned to reputed public sector companies in India. BSNL is India's oldest and largest Communication Service Provider (CSP). Currently has a customer base of 73 million as of June 2008. It has footprints throughout India except for the metropolitan cities of Mumbai and New Delhi which are managed by MTNL.

THE BSNL SERVICES


BSNL LANDLINE. PHONE PLUS SERVICE NEW TELEPHONE CONNECTION PERMANENT CONNECTION CONCESSION IN RENTALS SHIFT OF TELEPHONE TRANSFER OF TELEPHONE TELEPHONE TARIFF BSNL MOBILE POSTPAID PREPAID GPRS/WAP/MMS TARIFF SMS & BULK SMS BSNL WLL INTERNET SERVICES NETWORK BROADBAND TYPES OF ACCESS WI-FI BSNL WEB HOSTING DIAL UP INTERNET BSNL BROADBAND REGISTER ONLINE TARIFF CHECK USAGE

MARKETING STRATEGIES OF BSNL


Marketing vision of the BSNL has to be based on overall mission and vision of the organization. The mission of BSNL is To provide world class State-of-art technology telecom services on demand at affordable price. To provide world class telecom infrastructure to develop country's economy. And the Vision of BSNL is To become the largest telecom Service Provider in Southeast Asia. In dynamic environment anything permanent is CHANGE. So we must revise and review so that focus is never lost.

MARKETING OBJECTIVE
The ultimate objective of any marketing activity is to satisfy the customers and today even a step ahead i.e. delighting the customers, for which customers are offered something beyond their expectations from the service or the product. The objective being to acquire and retain the customers, who should continually feel that they are getting more value of the money, they are departing with. Marketing is the establishment, development, maintenance and optimization of long-term mutually valuable relationships between consumers and organisation.

SOCIAL RESPONSIBILITY
We were the most trusted telecom brand in year 2003 & 2004. We have been given Golden Peacock award for Best Corporate Social responsibility. How can we leverage these distinctions? These achievements need to be highlighted through public relation exercise like press meet. This will help us in building our marketing image. In sales and distribution front though we have over one-lakh retailers, 1000 franchisees, 3300 CSCs, 36000 exchanges why are we not visible like others? Why cant we utilize all possible space? Cant we leverage our franchisee and STD-PCO strengths? Can we make these outlets as our core strength? Why our recharge coupons, India Telephone Cards are in shortage when there is no capacity constraint? Does it imply that our planning for printing, inventory management, logistics, and supply chain and of course franchisee management is inefficient? Do we have targets for these just like DELs & CellOne? Why cant we leverage this huge network for better customer care and improve collection efficiency? We must realize that with waiver of security deposits, no OYT schemes, no advance rentals, adjustment of landline security for CellOne, we dont get fixed deposits to meet our funds requirements. Everything has to be met from Operating revenues. We need to improve collections, realize bills early, not on the last day of payment and reduce bad debts. We need to provide 24X7 culture in our organization, though we have been providing operation and maintenance on 24X7 basis in the past and we will continue to provide in future too, but what about provisioning customer care and marketing on 24X7 basis

AIRCEL

Maxis expansion into Indonesia and India is another milestone in our aspiration to be the regional communications leader of choice. The acquisition of a 51% stake in PT Natrindo Telepon Seluler (NTS), Indonesia and a 74% equity interest in Aircel, India provides new growth opportunities for Maxis. These acquisitions give Maxis a strong foothold in two of the worlds most attractive highgrowth, low-penetration markets Maxis in INDONESIA On 29th April 2005, Maxis acquired 51% of PT Natrindo Telepon Seluler. Maxis is currently in the middle of rolling out a Java wide network to establish the company as a national operator. Th initial launch phase encompasses 1,300 BTS, providing both 2G and 3G services. NTS expects to have up to 480 employees by launch date and to increase significantly upon launching. Maxis in India Maxis completed the acquisition of a 74% stake in Aircel on March 21,2006. Currently, Aircel has operations in 9 of the 23-telecom circles of India - Chennai, Tamil Nadu, West Bengal, Orissa, Assam, North East, Jammu and Kashmir, Himachal Pradesh and Bihar. Aircel launched its services in Bihar and Himachal Pradesh in December 2006 and also recently received the licenses to operate in the remaining 14- telecom circles of India giving it the ability to become a pan-India player. Maxis expansion into Indonesia and India is another milestone in our aspiration to be the regional communications leader of choice. The acquisition of a 51% stake in PT Natrindo Telepon Seluler (NTS), Indonesia and a 74% equity interest in Aircel, India provides new growth opportunities for Maxis. These acquisitions give Maxis a strong foothold in two of the worlds most attractive highgrowth, low-penetration markets. This marks the beginning of the new world of Maxis a world beyond voice, and beyond borders. MAP Maxis in Indonesia On 29th April 2005, Maxis acquired 51% of PT Natrindo Telepo Seluler. Maxis is currently in the middle of rolling out a Java wide network to establish the company as a national operator. The initial launch phase encompasses 1,300 BTS, providing both 2G and 3G services. NTS expects to have up to 480 employees by launch date and to increase significantly upon launching. Maxis in India Maxis completed the acquisition of a 74% stake in Aircel on March 21, 2006. Currently, Aircel has operations in 9 of the 23 telecom circles of India - Chennai, Tamil Nadu,

West Bengal, Orissa, Assam,North East, Jammu and Kashmir, Himachal Pradesh and Bihar. Aircel launched its services in Bihar and Himachal Pradesh in December 2006 and also recently received the licenses to operate in the remaining 14 telecom circles of India giving it the ability to become a panIndia player. Aircel expects to aggressively grow its subscriber base in India and is developing a broad range of new propositions for its customers - from branding, to increased network coverage, to innovative product and service offerings, to refreshing customer experience. As of 31st December 2006, Aircel serves more than 4.5 million subscribers with a network comprising of almost 4,000 BTS. Aircel continues to be the market leader in Tamil Nadu and Chennai circle. Aircels network provides 2G and GPRS services, and is EDGE capable. Aircel is also currently in the process of conducting 3G Trials across different cities in India. In addition, Aircel is the first cellular operator in India to launch wireless Internet services using WiMAX technology. It aims to immediately extend its WiMax coverage to over 20 cities to serve enterprise broadband customers. Over the next few quarters, India is expected to add new subscribers at the rate of 5 to 6 million per month. India offers huge opportunities for Aircel given the current low mobile. MISSION STATEMENT We are conditionally committed to exceeding our customers expectations. we will provide network and services that are innovative and reliable, allowing our customers any time anywhere communications. we will attract, develop and retain an exceptional team of people. We are committed to enhancing the quality of real life in the community in which we operate. Wewill meet the financial expectation of our shareholders. OUR GOALS AND VALUES CUSTOMERS :our customers are our most valued assets. we will strive to exceed their expectations at all time by providing them with superior services that embody value, innovation, quality and care. PEOPLE : our people are our greatest resources. we will attract, train and retain the best.we will challenge them to develop their full potential in the context of our company goals. INTEGRITY : We will maintain and strive for the highest levels of personal and professional integrity and honesty in all ours dealings. We will keep our promises. RESPECT : We will treat with respect & dignity all people we deal with. EXCELLENCE : We are committed to excellence in all what we do.there will be.

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