Location via proxy:   [ UP ]  
[Report a bug]   [Manage cookies]                
0% found this document useful (0 votes)
121 views71 pages

"Comparative Study of Telecom Services in Allahabad": Ms. Urvashi Varma Abhijit Tiwari

Download as docx, pdf, or txt
Download as docx, pdf, or txt
Download as docx, pdf, or txt
You are on page 1/ 71

PROJECT REPORT

From 3-6-2010 to 3-8-2010


On

“Comparative study of telecom services in


Allahabad”

DISHNET WIRELESS LTD.

Project Guide: Submitted By:

Ms. Urvashi Varma Abhijit Tiwari


(Lecturer) (PGDM 3RD SEM.2009-2011)
BLS Institute of Management BLS Institute of Management
Ghaziabad. Ghaziabad.

1
ACKNOWLEDGEMENT

The success of this final report is the outcome of Guidance and valuable suggestions
provided by all the concerned without whom the report could not fide on the right back.
I would like to express my sincere gratitude to Coordinator and Guide Ms. Urvashi
Varma for giving me an opportunity to do this project as well as for helping me time to
time and my respected faculty Somesh Raizada Sir who has motivated me to do training
in Telecom sector.
I express my sense of deep gratitude to Faculty’s supervisor of BLS Institute of
Management, Ghaziabad for inclusions and timely suggestions in the preparation of this
final report. Finally, I will be failing in my duty, if I do not thank my parents & friends
and well wishers for their enthusiastic support and who have directly or indirectly helped
in some way or the other in making this final report a success.

PREFACE

2
Telecom sector, irrespective of being in private or public regime, is expanding which
brings around both challenges and opportunities. Opening of the Indian sector has led to
the presence of many private players. This has about a sea change in the areas of
customer service; speed & flexibility. They point here is that their entry will mean better
choice of products and services for the consumer. The middle-market segment holds
great potential. Therefore, private telecom would best serve the middle-market
approach, targeting customer segments that are currently untapped.

Post graduate diploma in management is a course, which combines both theory and its
applications as its contents of study in the field of management. As part and parcel of
this course, every aspirant has to undergo an ‘in – company training’ in an organization.

The training period consist of 2 Month from 3rd June 2010 to 3rd August 2010.

The purpose of this training is to introduce the student of management sciences to real
life situations existing in the organizations and to provide an insight into the various
functions so that they can visualize things that they have been taught to them in the
classrooms. I was fortunate enough to do my training in Dishnet Wireless Ltd. As a
complementary to training, every trainee has to prepare and submit a report on the
working of the organization. This report continues the tradition. It is an attempt to
present an account of practical knowledge and observations gathered during the training
at Allahabad.

DECLARATION

3
I hereby declare that the project report on “Comparative study of telecom services in
Allahabad” Is written and submitted by me to BLS Institute of Management, Ghaziabad
towards the fulfillment for the study of PGDM. This project is based on my knowledge
and database gained from the company. The report written is original work of me. The
contents provided are true to the best of my knowledge and belief.

I further declare that, this project report is not been copied and submitted to any other
university for any other degree, or requirement course.

Abhijit Tiwari
(PGDM 2009-2011)

4
Contents
Sr. No. Subjects Covered Pages
Project Proposed
Objective of the project 7
Scope of the project 7
Executive summary 7
Research methodology 8
1. Introduction
1.1 Introduction to Telecom 9
1.2 Definition of Telecom 9
1.3 Privatization of Telecom in India 10-11
1.4 Pre reform period of telecom in India 12
1.5 Reform of telecom in India 12-16
1.6 Basic Structure of Indian Telecom 17
1.7 Achievement in Telecom sector in 2008-2010 18
1.8 Recommendations made during the year 08-09 18
1.9 Telecom in Allahabad 19-20
2. Trends in telecom Sector
2.1 Emerging Trend in Indian Telecom Sector 21-22
2.2 Growth avenues of Telecom Sector 23-24
2.3 Industry Revenue (2002-2010) 25
2.4 International trends in Telecom 26-27
2.5 Subscriber Growth 28
2.6 Future Technology Trends 29-30

Company Analysis of Aircel, Idea, Uninor &


3.
Tata Docomo

3.1 Company Analysis of Aircel 31-33


3.2 Company Analysis of Idea 34-36
3.3 Company Analysis of Uninor 37-38
3.4 Company Analysis of Tata Docomo 39-40
3.2 Organization Chart of Aircel 41

Product Offered by Aircel, Idea,Tata


4.
Docomo,Uninor

4. Product Offered by Aircel 42-44


1
4.2 Product Offered by Idea 44-46
4.3 Product Offered by Tata Docomo 46-47

5
4.4 Product Offered by Uninor 48-49
5. Comparison among Telecom Sector on
services
5.1 Comparison among Aircel, Idea,Tata Docomo,Uninor 50-56
6. Data analysis and interpretation
6.1 57-66
Data Interpretation & Finding of retailer Survey

6.2 Limitations 67
Conclusion 68

Appendix 69

Objective
The project was conducted after taking into consideration the changing face of the
Telecom sector. The objective for conducting this project is
 To understand the Telecom sector in India.
 To learn about Aircel, Idea, Tata Docomo, Uninor.
 To know the scope of telecom sector in Allahabad as well as in India.
To realize the masses how carrier can be developed generating huge income from
telecom sector.
Scope
The project gives brief description of the following -
 What is Telecom?
 Effect of liberalization
 Trends in telecom sector

6
 Services offered by Aircel, Idea,Tata Docomo,Uninor in Allahabad

EXECUTIVE SUMMARY

The huge and ever rising population levels in our country provide an attractive
opportunity for the telecom to seek their fortunes here. That is the reason why we find so
many private players from India as well as outside of India are today competing each
other for Indian market. In spite of the loud noises made by the various companies’
vying for a slice of the large Indian Telecom sector, This is the precisely the reason why
we see a mandatory tag today with every advertisement that advertises for a telecom
products and services, Telecom industries are aware of the fact that many Indian
consumers are interested in this beneficial sector.

7
Information Research

RESEARCH METHODOLOGY

Primary Secondary
data data
Collection collection

Personal
interview,
Questionnaires Literature
Internet study

Mr. Laxmikant
Books on telecom
Distributor sales
8
man
(Aircel)
Area of surveyed: Allapur which is sub city of Allahabad. I have conducted research
from 50 retailers from Allapur. Population wise both are highly density area.

Chapter 1
Introduction of Telecom

Telecommunication:

Telecommunication is the transmission of messages over significant distances for the


purpose of communication. In earlier times, telecommunications involved the use of
visual signals, such as smoke, semaphore telegraphs, signal flags, and optical
heliographs, or audio messages via coded drumbeats, lung-blown horns, or sent by loud
whistles.

In the modern age of electricity and electronics, telecommunications has typically


involved the use of electric means such as the telegraph, the telephone, and the teletype,
the use of microwave communications, the use of fiber optics and their associated

9
electronics, and the use of the Internet. The first breakthrough into modern electrical
telecommunications came with the development of the telegraph during the 1830s and
1840s. The use of these electrical means of communications exploded into use on all of
the continents of the world during the 19th century, and these also connected the
continents via cables on the floors of the ocean.

A revolution in wireless telecommunications began in the first decade of the 20th


Century, with Guglielmo Marconi winning the Nobel Prize in Physics in 1909 for his
pioneering developments in wireless radio communications.

Telecommunications play an important role in the world economy and the worldwide
telecommunication industry's revenue was estimated to be $3.85 trillion in 2008. The
service revenue of the global telecommunications industry was estimated to be $1.7
trillion in 2008, and is expected to touch $2.7 trillion by 2013.

DEFINITIONS

 Telecommunication: It is systems used in transmitting messages over a distance


electronically.

 Telecommunication is the transmission of signals over a distance for the purpose


of communication.

Telecommunications in India

The Indian telecommunication industry is one of the world's fastest growing industry,
with 621.28 million telephone (landlines and mobile) subscribers and 584 million mobile
phone connections as of March 2010, is the second largest telecommunication network
in the world and the second largest in terms of number of wireless connections in the
world after China. Telecommunication activities saw rapid growth in India starting at the
dawn of the 21st century and since then; efforts have been made from both governmental
and non-governmental organizations to further improve the telecommunication
infrastructure. The eventual goal is to foster the development and widespread use of
modern telecommunication technologies that will serve all segments of India’s culturally
diverse society, and to transform it into a country of technologically aware people. The
Indian Mobile subscriber base has increased in size by a factor of more than one-hundred
since 2001 when the number of subscribers in the country was approximately 5 million
to 584 million in March 2010.

10
As the fastest growing telecommunications industry in the world, it is projected that
India will have 1.159 billion mobile subscribers by 2013. Furthermore, projections by
several leading global consultancies indicate that the total number of subscribers in India
will exceed the total subscriber count in the China by 2013. The industry is expected to
reach a size of Rs 344,921 crore (US$ 73.47 billion) by 2012 at a growth rate of over 26
per cent, and generate employment opportunities for about 10 million people during the
same period. According to analysts, the sector would create direct employment for 2.8
million people and for 7 million indirectly. In 2008-09 the overall telecom equipments
revenue in India stood at Rs 136,833 crore (US$ 29.15 billion) during the fiscal, as
against Rs 115,382 crore (US$ 24.58 billion) a year before.

Privatization of telecommunications in India

Liberalization started in 1981 when Prime Minister Indira Gandhi signed contracts with
Alcatel CIT of France to merge with the state owned Telecom Company (ITI), in an
effort to set up 5,000,000 lines per year. But soon the policy was let down because of
political opposition. She invited Sam Pitroda a US based NRI to set up a Center for
Development of Telemetric(C-DOT); however the plan failed due to political reasons.
During this period, after the assassination of Indira Gandhi, under the leadership of Rajiv
Gandhi, many public sector organizations were set up like the Department of
Telecommunications (DoT) , VSNL and MTNL. Many technological developments took
place in this regime but still foreign players were not allowed to participate in the
telecommunications business.

During this period that the P.N Rao led government introduced the national
telecommunications policy [NTP] in 1994 which brought changes in the following areas:
ownership, service and regulation of telecommunications infrastructure. They were also
successful in establishing joint ventures between state owned telecom companies and
international players. Foreign firms were eligible to 49% of the total stake. The multi-
nationals were just involved in technology transfer, and not policy making.

The country was divided into 20 telecommunication circles for basic telephony and 18
circles for mobile services. These circles were divided into category A, B and C
depending on the value of the revenue in each circle. The government threw open the
bids to one private company per circle along with government owned DoT per circle.
For cellular service two service providers were allowed per circle and a 15 years license
was given to each provider. During all these improvements, the government did face
oppositions from ITI, DoT, MTNL, VSNL and other labor unions, but they managed to
keep away from all the hurdles.

After 1995 the government set up TRAI (Telecom Regulatory Authority of India) which
reduced the interference of Government in deciding tariffs and policy making. The DoT
opposed this. The political powers changed in 1999 and the new government under the
leadership of Atal Bihari Vajpayee was more pro-reforms and introduced better
liberalization policies. They split DoT in two- one policy maker and the other service
provider (DTS) which was later renamed as BSNL. The proposal of raising the stake of
foreign investors from 49% to 74% was rejected by the opposite political party and
leftist thinkers. Domestic business groups wanted the government to privatize VSNL.
Finally in April 2002, the government decided to cut its stake of 53% to 26% in VSNL

11
and to throw it open for sale to private enterprises. TATA finally took 25% stake in
VSNL.

This was a gateway to many foreign investors to get entry into the Indian Telecom
Markets. After March 2000, the government became more liberal in making policies and
issuing licenses to private operators. The government further reduced license fees for
cellular service providers and increased the allowable stake to 74% for foreign
companies. Because of all these factors, the service fees finally reduced and the call
costs were cut greatly enabling every common middle class family in India to afford a
cell phone. Nearly 32 million handsets were sold in India. The data reveals the real
potential for growth of the Indian mobile market.

In March 2008 the total GSM and CDMA mobile subscriber base in the country was 375
million, which represented a nearly 50% growth when compared with previous year. As
the unbranded Chinese cell phones which do not have International Mobile Equipment
Identity (IMEI) numbers pose a serious security risk to the country, Mobile network
operators therefore planned to suspend the usage of around 30 million mobile phones
(about 8 % of all mobiles in the country) by 30 April. 5–6 years the average monthly
subscribers additions were around 0.05 to 0.1 million only and the total mobile
subscribers base in December 2002 stood at 10.5 millions. However, after a number of
proactive initiatives were taken by regulators and licensors, the total number of mobile
subscribers has increased greatly to 584 million people as of March 2010.

India has opted for the use of both the GSM (global system for mobile communications)
and CDMA (code-division multiple access) technologies in the mobile sector. In
addition to landline and mobile phones, some of the companies also provide the WLL
service. The mobile tariffs in India have also become lowest in the world. A new mobile
connection can be activated with a monthly commitment of US$0.15 only. In 2005 alone
additions increased to around 2 million per month in the year 2003-04 and 2004-05.

In June 2009, the Government of India banned the import of several mobile phones
manufactured in China citing concerns over quality and the lack of IMEI's which make it
difficult for authorities in India to track the sale and use of such phones.

Pre reform period and Telecommunication in India

Before 1990's Telecommunication services in India were complete government


Monopoly - the Department of Telecommunication (DoT). Government also retained the
rights for manufacturing of Telecommunication equipments. MTNL and VSNL were
created in the year 1986.Early 1990's saw initial attempts to attract private investment.
Telecommunication equipment manufacturing was rejecting licensed in the year 1991.

A notable revolution has occurred in the telecom sector. In the pre reforms era, this was
entirely in the hands of the central government and due to lack of competition, the call
charges were quite high. Further, due to lack of funds with the government, the
government could never meet the demand for telephones. In fact, a person seeking a
telephone connection had to wait for years before he could get a telephone connection.
The service rendered by the government monopoly was also very poor. Wrong billing,

12
telephones lying dead for many days continuously due to slackness on the part of the
telecom staff to attend to complaints, cross connections due to faulty maintained
telephone lines, obsolete instruments and machinery in the telephone department were
the order of the day in the pre reforms era.

The number of telephone connections which was only 2.15 million (fixed lines) in 1981
increased to 5.07 million (fixed lines) in 1991.

The first step toward deregulation and beginning of liberalization and private sector
participation was the announcement of National Telecom Policy 1994.NTP 1994, for the
first time, allowed private/foreign players to enter the 'basic' and the 'new cellular mobile
section. FDI up to 49% of total equity was also allowed in these sectors. The policy
allowed one private service provider to compete in basic services with the incumbent
DoT in each DoT internal circle. It allowed duopoly in cellular mobile services in each
circle. As part of the implementation of the NTP 94, licenses were issued against license
fees through a bidding process. This policy initiated the setting up of an independent
regulator–the Telecom Regulatory Authority of India (TRAI), which was established in
1997. The main objective of TRAI is to provide an effective regulatory framework to
ensure fair competition while, at the same time, protect the interest of the consumers.

Reforms in Telecom sector since early 1990's till date are briefed
below:

1991-92:

1. On 24th July 1991, Government announced the New Economic Policy.


2. Telecom Manufacturing Equipment license was rejecting licensed in 1991.
3. Automatic foreign collaboration was permitted with 51 per cent equity by the
collaborator.

1992-93:

1. Value added services were opened for private and foreign players on franchise or
license basis. These included cellular mobile phones, radio paging, electronic mail, voice
mail, audiotex services, videotex services, data services using VSAT's, and video
conferencing.

1994-95:

1. The Government announced a National Telecom Policy 1994 in September 1994. It


opened basic telecom services to private participation including foreign investments.
2. Foreign equity participation up to 49 per cent was allowed in basic telecom services,
radio paging and cellular mobile. For value added services the foreign equity cap was

13
fixed at 51 per cent.
3. Eight cellular licenses for four metros were finalized.

1996-97:

1. TRAI was set up as an autonomous body to separate the regulatory functions from
policy formulations and operational functions.
2. Coverage of the term "infrastructure" expanded to include telecom to enable the sector
to avail of fiscal incentives such as tax holiday and concessional duties.
3. An agreement between Department of Telecommunication (DoT) and financial
institutions to facilitate funding of cellular and basic telecom projects.
4. External Commercial Borrowing (ECB) limits on telecom projects made flexible with
an increased share from 35 per cent to 50 per cent of total project cost.
5. Internet Policy was finalized.

1998-99:

1. FDI up to 49 per cent of total equity, subject to license, permitted in companies


providing Global Mobile Personal Communication (GMPC) by satellite services.

1999-00:

1. National Telecom Policy 1999 was announced which allowed multiple fixed Services
operators and opened long distance services to private operators.
2. TRAI reconstituted: clear distinction was made between the recommendatory and
regulatory functions of the Authority.
3.  DOT/MTNL was permitted to start cellular mobile telephone service.
4. To separate service providing functions from policy and licensing functions,
Department of Telecom Services was set up.
5. A package for migration from fixed license fee to revenue sharing offered to cellular
and basic service providers.
6. First phase of re-balancing of tariff structure started. STD and ISD charges were
reduced by 23 per cent on an average.
7. Voice and data segment was opened to full competition and foreign ownership
increased to 100 per cent from 49 per cent previously.

2000-01:

1. TRAI Act was amended. The Amendment clarified and strengthened the
recommendatory power of TRAI, especially with respect to the need and timing of
introduction of new services provider, and in terms of licenses to a services provider.
2. Department of Telecom Services and Department of Telecom operations corporatized
by creating Bharat Sanchar Nigam Limited.
3. Domestic long distance services opened up without any restriction on the number of
operators.
4. Second phase of tariff rationalization started with further reductions in the long
distance STD rates by an average of 13 per cent for different distance slabs and ISD rates
by 17 per cent.

14
5. Internet Service Providers were given approval for setting up of International
Gateways for Internet using satellite as a medium in March 2000.
6. In August 2000, private players were allowed to set up international gateways via the
submarine cable route.
7. The termination of monopoly of VSNL in International Long Distance services was
antedated to March 31, 2002 from March 31, 2004.

2001-02:

1. Communication Convergence Bill, 2001 was introduced in August 2001.


2. Competition was introduced in all services segments. TRAI recommended opening up
of market to full competition and introduction of new services in the telecom sector. The
licensing terms and conditions for Cellular Mobile were simplified to encourage entry
for operators in areas without effective competition.
3. Usage of Voice over Internet Protocol permitted for international telephony service.
4. The five-year tax holiday and 30 per cent deduction for the next five years available to
the telecommunication sector till 31st March 2000 was reintroduced for the units
commencing their operations on or before 31st March 2003. These concessions were
also extended to internet services providers and broadband networks.
5. Thirteen ISP's were given clearance for commissioning of international gateways for
Internet using satellite medium for 29 gateways.
6. License conditions for Global Mobile Personal Communications by Satellite finalized
in November 2001.
7. National Long Distance Service was opened up for unrestricted entry with the
announcement of guidelines for licensing NLD operators. Four companies were issued
Letter of Intent (LOI) for National Long Distance Service of which three licenses have
been signed.
8. The basic services were also opened up for competition. 33 Basic Service licenses (31
private and one each to MTNL and BSNL) were issued up to 31stDecember 2001.
9. Four cellular operators, one each in four metros and thirteen were permitted with 17
fresh licenses issued to private companies in September/October 2001. The cell phone
providers were given freedom to provide, within their area of operation, all types of
mobile services equipment, including circuit and/or package switches that meet the
relevant International Telecommunication Union (ITU) Telecom Engineering Centre
(TEC) standards.
10. Wireless in Local Loop (WLL) was introduced for providing telephone connection in
urban, semi-urban and rural areas.
11. Disinvestment of PSU's in the telecom sector was also undertaken during the year. In
February 2002, the disinvestment of VSNL was completed by bringing down the
government equity to 26 per cent and the management of the company was transferred to
Tata Group, a strategic partner. During the year, HTL was also disinvested.
12. Government allowed CDMA technology to enter the Indian market.
13. Reliance, MTNL and Tata were issued licenses to provide the CDMA based services
in the country.
14. TRAI recommended deregulating regulatory intervention in cellular tariffs, which
meant that operators need no longer have prior approval of the regulator for
implementing tariff plans except under certain conditions.

2002-03:

15
1.  International long distance business opened for unrestricted entry.
2.  Telephony on internet permitted in April 2002.
3.  TRAI finalized the System of Accounting Separation (SAS) providing detailed
accounting and financial system to be maintained by telecom service providers.

2003-04:

1. Unified Access Service Licenses regime for basic and cellular services was introduced
in October 2003. This regime enabled services providers to offer fixed and mobile
services under one license. Consequently 27 licenses out of 31 licenses converted to
Unified Access Service Licenses.
2. Interconnection Usage Charge regime was introduced with the view of providing
termination charge for cellular services and enable introduction of Calling Party Pays
regime in voice telephony segment.
3. The Telecommunication Interconnection Usage Charges Regulation 2003 was
introduced on 29th October 2003 which covered arrangements among service providers
for payment of Interconnection Usage Charges for Telecommunication Services and
covered Basic Service that includes WLL (M) services, Cellular Mobile Services, and
Long Distance Services (STD/ISD) throughout the territory of India
4. The Universal Service Obligation fund was introduced as a mechanism for transparent
cross subsidization of universal access in telecom sector. The fund was to be collected
through a 5 per cent levy on the adjusted gross revenue of all telecom operators.
5. Broadcasting notified as Telecommunication services under Section 2(i) (k) of TRAI
Act.

2004-05:

1. Budget 2004-05 proposed to lift the ceiling from the existing 49 per cent to 74 per
cent as an incentive to the cellular operators to fall in line with the new unified licensing
norm.
2. 'Last Mile' linkages permitted in April 2004 within the local area for ISP's for
establishing their own last mile to their customers.
3.  Indoor use of low power equipments in 2.4 GHz band de-licensed from August 2004.
4. Broadband Policy announced on 14th October 2004. In this policy, broadband had
been defined as an "always-on" data connection supporting interactive services including
internet access with minimum download speed of 256 kbps per subscriber.
5. The Telecommunications (Broadcasting and Cable Services) Interconnection
Regulation 2004 was introduced on 10th December 2004.
6.  BSNL and MTNL launched broadband services on 14th January 2005.
7. TRAI announced the reduction of Access Deficit Charge (ADC) by 41 per cent on
ISD calls and by 61 per cent on STD calls which were applicable from 1st February
2005.

2005-2006:

1. Budget 2005-2006 cleared a hike in FDI ceiling to 74 per cent from the earlier limit of
49 per cent. 100 per cent FDI was permitted in the area of telecom equipment
manufacturing and provision of IT enabled services.
2.  Annual license fee for National Long Distance (NLD) as well as International Long
Distance (ILD) licenses reduced to 6 per cent of Adjusted Gross Revenue (AGR) with

16
effect from 1st January 2006.
3. BSNL and MTNL launched the 'One-India Plan' with effect from 1st March 2006
which enable the customers of BSNL and MTNL to call from one end of India to other
at the cost of Rs. 1 per minute, any time of the day to phone.
4. TRAI fixed Ceiling Tariff for International Bandwidth, Ceiling Tariff for higher
capacities reduced by about 70 per cent and for lower capacity by 35 per cent.
5.  Regulation on Quality of Service of Basic and Cellular Mobile Telephone Services
2005 introduced on 1st July 2005.
6.  BSNL announced 33 per cent reduction in call charges for all the countries for
international calls.
7. Quality of Service (Code of Practice for Metering and Billing Accuracy) Regulation
2006 introduced on 21st March 2006.

11th plan (2007-20012)

FDI in Telecom sector has increased in recent years with value of 81.62 billion with
share of 10% in total inflow during January 2000 to June 2005. This is mainly in telecom
services and not in telecom manufacturing sector. Therefore, it is essential to enhance
the prospect for inflow of increased funds. The NTP 1999 sought to promote exports of
telecom equipments and services. But till date export of telecom equipment remains
minimal. Most of the state-of-the-art telecom equipments including mobile phones are
imported from abroad. There is thus immense potential for indigenous manufacturing in
India. Certain measures like financial packages, formation of a telecom export
promotion council, creation of integrated facilities for telecom equipment through SEZ
and encouraging overseas vendors to set up facilities in India, are required for making
India a hub for telecom equipment manufacturing and attract FDI. The telecom sector
has shown robust growth during the past few years. It has also undergone a substantial
change in terms of mobile versus fixed phones and public versus private participation.
The following table and discussions from the report of the working report on the telecom
sector for the 11th plan (2007-2012) will show the growth of telecom sector since 2003.

BASIC STRUCTURE OF INDIAN TELECOM

17
Ministry of Communication & Information Technology
Ministry of Communication & Information Technology

Licensor
Licensor
Dept of Telecom Unified License Operators
Dept of Telecom Unified License Operators

Fixed Line Operators


Regulator Fixed Line Operators
Regulator
Telecom Regulatory National Long Distance Operators
Telecom Regulatory National Long Distance Operators
Authority of India
Authority of India CDMA
CDMA
International Long Distance Operators 1800Mhz
International Long Distance Operators 1800Mhz
Judiciary
Judiciary
Telecom Dispute Settlement
Telecom Dispute Settlement Wireless Operators
Appellate Tribunal Wireless Operators
Appellate Tribunal
GSM
GSM
900 &
900 &
1800
1800

Achievement in Telecom sector in 2008-2010

 The total wireless subscriber base {GSM, CDMA and WLL (F)} stood at 391.76
million at end of financial year 2009.

 On an average, more than 10 million subscribers were added every month

18
 There were 13.54 million internet subscribers on 31st March 2009 as compare to
11.09 million 2008.

 Besides the internet subscribers mentioned above there are 117.82 million
wireless data subscribers who are assessing internet through (GSM & CDMA)
networks

 The number of Broad- Band Connections on 31st March 2009 was 6.22 million
compared to 3.87 million for the same period during the previous year.

Sources: www.trai.gov.in

Major Recommendation made during the year 2008-2009

 Recommendation on Foreign Investment Limits for Broadcasting Sector.

 Recommendations on Restructuring of Cable TV Services

 Recommendation on Mobile Virtual Network Operators.

 Recommendation on Issues related to internet telephony.

 Recommendation on Modifications proposed by DoT on the spectrum usage


charges for 3 G Services.

 Recommendation on an approach to rural telephony –suggested measures for an


Accelerated Growth.

Sources: www.trai.gov.in

19
Telecom in Allahabad

In our state Uttar Pradesh developmental challenges are many and almost every
sector needs a special attention and package to grow. Since unprecedented progress in
technology has made telecom sector one of the engines of growth, we want to see this
sector progress to register increasing momentum in the growth of economy on all fronts.
Every one percent growth in tele-density is accompanied by 3% growth in Gross
Domestic Product and sometimes this growth has been reported above 5% in some
surveys conducted in developing nations. The tele-density - the number of phones per
100 of population - in fact is the very important indicator adopted for measuring the
performance of this sector and in Allahabad it has risen. We have to bear in mind that
development of the telecom infrastructure holds out a considerable promise for the
development of Allahabad because of the economic benefits.
As far as telecommunication facilities in Uttar Pradesh state are concerned, we cannot
ignore the fact that telecom penetration has been uneven across the urban and rural
segments. Falling cost of services and accessories coupled with innovative tariff plans
has made initial entry cost affordable and this factor is largely contributing to the
growing demand of phone connections.
Take the case of mobile phone. This segment of phones is vital in a state like ours. These
are the primary form of telecommunication in most emerging economies as on date. In
other words, mobile phones have the capacity to revolutionize even small and tiny
businesses and the people associated with these businesses can improve their earnings at
a faster rate. Its efficient use can save time and money and provide quicker access to
information. It’s no longer just something that only the rich can afford. Now, it’s a basic
means of communication. If such type of telecom facilities is made cost effective, it can
help in fuelling rapid growth all rounds in the State. The main constraint to growth of
telecom in the state stems from the supply side (service providers). These have resulted
in the limitation on the expansion of services into unreached areas of the state. Even
there has been no quality improvement of existing services. The lack of proper
coordination among the five mobile service providers in the state, BSNL, Airtel,
Reliance, Vodafone and Aircel, is creating difficulties for subscribers as far as smooth
connectivity is concerned. Calls between services, within services, and to landline
phones are difficult to get through. It is notable that Reliance, which has a large presence

20
in the rest of country, has yet to start its operations in the state despite having a license to
do so now for the past two years. There is need to encourage competitive pressures
through multi-operator scenario in Uttar Pradesh. As per the existing TRAI guidelines
operators are obliged to provide connectivity to other operators at points of interconnect
(POI) on their respective networks. Let them bear in mind that interconnectivity is vital
for healthy competition among service providers as it will improve the quality of service
and cut down the cost. High capital and operating costs of telecom services in the state
are put as major hindrances in the smooth development of the sector. The service
providers also point out mountainous terrain that hinders the telecom signal thereby
limiting the reach of each telecom tower.

21
Chapter 2
Trends in Telecom Sector

Top 10 telecom trends

1. Equipment consolidation by putting more functionality at the edge of the network –


This will help in minimizing the hardware investments while maintaining highly scalable
and flexible networks. For example, rather than purchasing and managing separate
devices for edge routing, Ethernet aggregation and subscriber management, carriers are
opting for multi-service devices that integrate various functionality into a single routing
platform. We expect this trend will continue gaining momentum into next year.

2. Fourth Generation (4G) Technology – R&D spending in 4G technology will


happen, which will be able to deliver up to 100Mbps bandwidth with Quality of Service
(QoS) and traffic prioritization. Hence, video conferencing using mobile will be
possible.

3. Fixed Mobile Convergence (FMC) – There will be deployments in FMC space


leading to a smooth transfer between Fixed and Mobile networks, with rich user
experience delivered at lower cost. Thus the gap between wire line and wireless
networks will get bridged.

4. Telepresence service is used in video-conferences to give a realization that the


participants are all in the same room by using life-sized people and superior voice
quality. On the network side this means audio and video delivery using Service Level
Agreements on performance guarantees need to be in place. It will save millions of
dollar for the company travel cost as well as improve employee productivity besides
reducing pollution levels. Hence, in future deeper penetration will happen in the market
place with solutions becoming more affordable.

5. Security – Security will continue to be emphasized in 2009 as internet based attacks


will become more sophisticated and challenging as profit driven criminals will try to
steal the confidential business and personal data.

6. Merger and Acquisition - With the continuation of global financial crisis hitting the
carriers, the consolidation in the Telecom industry will keep on happening. This will
result into mergers and acquisitions resulting in products consolidations.

7. Service Creation Environment (SCE) – The demand for new services at a fraction
of cost with quick to market will rise. Hence, the Service Creation Environment (SCE)
will be used extensively and the engineers with this skill-set will be in demand.

8. MVAS services – ARPU (average revenue per user) due to voice will continue to go

22
down and thus the carriers will look for avenues to quickly add more mobile value added
services (MVAS) to their portfolio. The new services will see a convergence of voice,
data and video.

9. New markets – As the service providers space gets crowded, the carriers will look for
newer markets e.g. in India the carriers will continue their march towards the villages.

10. IPTV and DTH – Quite some interest has been generated in the DTH segment in the
emerging markets like India. In the coming time, the consolidation of DTH will happen
and interest in IPTV will rise, which will lead to Video on demand, interactive games
etc.

Future Trends in Telecom in India

Over the past few months that I have been contributing to this tech portal, there has been
a sea change in the telecom industry. Each time I have a feeling that I have nothing to
write about and every week I have proved wrong to myself. I am trying to look at the
newer emerging trends, which are going to sustain the telecom companies in the future.

The initial roll out of the networks was a boom time for the equipment manufacturers
abroad. This indeed would have been a golden chance to ramp up domestic production
but opportunity slipped past by. I am told that much of the equipment is imported thus
escalating the costs for the roll out. This is a huge dampener for the eventual roll out for
the rural areas who have been left out of the ambit of telecom revolution for too long.
Part of the reason is the perceived inability to pay and part is the high cost of initial roll
out of infrastructure. In my opinion, instead of taking a short-term view of paying
capacity of rural areas, the telecom should focus on a long-term game. It was heartening
to note that finally the manufacturing arm of the government(C-Dot) was given the
budgetary support. How much it pays out in the long run, only time would tell.

There is one word that telecom companies are hearing a lot these days. They need
volumes to sustain the network and the fancy army of morons they have hired. In this
regard, companies like Reliance and Tata’s have gone aggressive over the final roll out
of the connections to PCO owners. I heard that Reliance is giving up to 30% commission
on each call. How they market out the connections is a tough battle indeed. If and when
the carrier access codes are introduced, we could really see a blood bath on the streets, as
far as prices are concerned. I am strong in my belief that prices can go down by almost
40% of the present structure. Part of the price cuts could be because of the tax
exemptions, if and when these companies can lobby for the same. Part of the same could
be to earn through volumes.

23
The next killer application is made out to be the value added services through mobiles. R
connect services from Reliance would be going paid soon. They offer plethora of
services, even train ticket booking on mobiles. Recently, the big daddy of Indian telecom
revolution, Sam Pitroda was marketing own services to pay bills through mobiles; in
effect moving towards a cashless society. He wanted to patent the same. I have no idea
as to how it worked since details were not available. However, NTT Docomo in Japan
offered the same facility there. How this is replicated in Indian scenario is worth looking
out for.

GROWTH AVENUES

Managed services are another segment that is attracting telecom companies. On account
of the rapidly growing subscriber base, service providers find it difficult to manage their
infrastructure and network management operations. In such cases, they completely or
partially outsource their infrastructure or network management operations.

 To reduce their network deployment costs, many service providers are


considering infrastructure sharing offers the following advantages:

 Improved service quality

 Increased affordability for customers

 Faster roll out of services in rural and remote areas

 Significant reduction in initial set up costs

 Increased environmental aesthetics

 Lower operating costs for service providers

24
Enterprise Telecom Services includes key services, such as voice over Internet protocol
(VoIP), dedicated telecom communication systems; IT infrastructure enabled unified
communication services, etc. Telecom service providers are increasingly targeting
enterprises by providing dedicated services and are expected to witness major
developments in near future.

Virtual Private Network is a private data network that provides connectivity within
closed user groups via public telecommunication infrastructure. Competition is likely to
heat up in the VPN segment as DoT has relaxed the norms for private players.

3G The Indian government plans to auction the spectrum for 3G services by inviting
bids from domestic as well as foreign players, and creating a competitive environment
that offers better services to consumers. Therefore, the 3G spectrum is among the major
investment opportunities and growth drivers of the telecom industry.
The immense potential for 3G is reflected by the 30–40 percent annual growth in Value-
Added Services.

Cell phone manufacturers are striving to develop USD 100 priced 3G handsets for the
Indian market.
India expects to replicate its 2G growth in 3G services.
WiMAX has been one of the most significant developments in wireless communication
in the recent past. Since this mode of communication provides network access in
inaccessible locations at a speed of more than 4 Mbps, it is expected to be a major factor
in driving telecom services in India, especially wireless services. Thus, it will lead to the
increased use of telecom services, Internet, value-added services and enterprise services.
WiMAX is expected to accelerate economic growth and assist in providing better
education, healthcare and entertainment services.

It is estimated that India will have 13 million WiMAX subscribers by 2012.

Aircel is the pioneer in WiMAX technology in India.

The state-owned player, BSNL, aims to connect 74,000 villages through WiMAX.

Bharti, Reliance and VSNL have acquired licenses in the 3.3GHz range to utilize the
opportunities offered by this domain.

Value Added Services: The VAS industry was worth USD 632 million in 2006–07. The
industry is estimated to grow by 60 percent in 2007–08 and become an USD 1,011
million opportunity.

The VAS industry is currently focusing on the entertainment sector, such as the Indian
film industry and cricket; however, there is scope for growth in other avenues as utility-
based services, such as location information and mobile transactions.
Rural Telephony: As the government targets to increase rural teledensity from the
current 2 percent to 25 percent by 2012, rural telephony will require major investments.
This segment will boost the demand for telecom services, equipment, Internet services
and other value-added services; thereby, offering great market opportunities for telecom
players.
Industry Revenue (2002-2010)

25
According to a Frost & Sullivan industry analyst, by 2012, fixed line revenues are
expected to touch US$ 12.2 billion while mobile revenues will reach US$ 39.8 billion in
India. India has become the second country in the world to have more than 100 million
CDMA-based (code division multiple access) mobile phone subscribers after the US,
which has 157 million CDMA users. The Indian telecommunications industry is on a
growth trajectory with the GSM operators adding nearly 9 million new subscribers in
April 2009, taking the total user base to 297 million, a growth of 3.11 per cent over the
additions made the previous month.
The figures, however, do not include the GSM subscriber additions made by Reliance
Telecom.

INTERNATIONAL TRENDS IN TELECOM


(Total Mobile)

26
A. Subscriber base (in millions)

Source: Merrill Lynch Global Research Estimates 2009

B. Wireless penetration

Source: Merrill Lynch Global Research Estimates 2009

C. Call charges per minute

27
Source: Merrill Lynch Global Research Estimates 2009

D. Average Revenue Per User

Sour
ce: Merrill Lynch Global Research Estimates 2009

28
Subscriber Growth

India added 130 million new customers in 2008-09, the largest globally. The country’s
cellular base witnessed close to 50 per cent growth in 2008, with an average 9.5 million
customers added every month. By April 2009, the total number of telephone connections
reached 441.47 million. With this growth, the overall teledensity reached 37.94 at the
end of April 2009. According to Business Monitor International, India is currently
adding 8-10 million mobile subscribers every month. It is estimated that by mid 2012,
around half the country's population will own a mobile phone. This would translate into
612 million mobile subscribers, accounting for a tele-density of around 51 per cent by
2012.

Source: www.trai.gov.in

29
Future Technology Trends

IP Multimedia Subsystem (IMS)


IP Multimedia Subsystem (IMS) is a generic architecture for offering multimedia and
voice over IP services, defined by 3rd Generation Partnership Project (3GPP). IMS is
access independent as it supports multiple access types including GSM, WCDMA,
CDMA2000, WLAN, Wire line broadband and other packet data applications. IMS will
make Internet technologies, such as web browsing, e-mail, instant messaging and video
conferencing available to everyone from any location. It is also intended to allow
operators to introduce new services, such as web browsing, WAP and MMS, at the top
level of their packet-switched networks. IP Multimedia Subsystem is standardized
reference architecture. IMS consists of session control, connection control and an
applications services framework along with subscriber and services data. It enables new
converged voice and data services, while allowing for the interoperability of these
converged services between internet and cellular subscribers. IMS uses open standard IP
protocols, defined by the IETF. So users will be able to execute all their services when
roaming as well as from their home networks. So, a multimedia session between two
IMS users, between an IMS user and a user on the Internet, and between two users on
the Internet is established using exactly the same protocol. Moreover, the interfaces for
service developers are also based on IP protocols.
Some of the possible applications where IMS can be used are:
 Presence services

 Full Duplex Video Telephony

 Instant messaging

 Unified messaging

 Multimedia advertising

 Multiparty gaming

 Video streaming

 Web/Audio/Video Conferencing

Push-to services, such as push-to-talk, push-to-view, push-to-video effectively, IMS


provides a unified architecture that supports a wide range of IP-based services over both
packet- and circuit-switched networks, employing a range of different wireless and fixed
access technologies. A user could, for example, pay for and download a video clip to a
chosen mobile or fixed device and subsequently use some of this material to create a
multimedia message for delivery to friends on many different networks. A single IMS

30
presence-and-availability engine could track a user's presence and availability across
mobile, fixed, and broadband networks, or a user could maintain a single integrated
contact list for all types of communications. A key point of IMS is that it is intended as
an open-systems architecture: Services are created and delivered by a wide range of
highly distributed systems (real-time and non-real-time, possibly owned by different
parties) cooperating with each other. It is a different approach to the more traditional
Telco architecture of a set of specific network elements implemented as a single Telco-
controlled infrastructure.
High Speed Downlink Packet Access (HSDPA)
High Speed Downlink Packet Access (HSDPA) is a packet based technology for W-
CDMA downlink with data transmission rates of 4 to 5 times that of current generation
3G networks (UMTS) and 15 times faster than GPRS. The latest release boosts downlink
speeds from the current end-user rate of 384 kbps (up to 2 Mbps according to standards)
to a maximum value according to standards of 14.4 Mbps. Real life end-user speeds will
be in the range of 2 to 3 Mbps.
HSDPA provides a smooth evolutionary path for Universal Mobile Telecommunications
System (UMTS) networks to higher data rates and higher capacities, in the same way as
Enhanced Data rates for GSM Evolution (EDGE) does in the Global System for Mobile
communication (GSM) world. The introduction of shared channels for different users
will guarantee that channel resources are used efficiently in the packet domain, and will
be less expensive for users than dedicated channels.

4G or Fourth Generation Networks


4G or Fourth Generation is future technology for mobile and wireless communications.
It will be the successor for the 3Rd Generation (3G) network technology. Currently 3G
networks are under deployment. Approximately 4G deployments are expected to be seen
around 2010 to 2015. The basic voice was the driver for second-generation mobile and
has been a considerable success. Currently, video and TV services are driving forward
third generation (3G) deployment. And in the future, low cost, high speeds data will
drive forward the fourth generation (4G) as short-range communication emerges. Service
and application ubiquity, with a high degree of personalization and synchronization
between various user appliances, will be another driver. At the same time, it is probable
that the radio access network will evolve from a centralized architecture to a distributed
one.
The evolution from 3G to 4G will be driven by services that offer better quality (e.g.
multimedia, video and sound) thanks to greater bandwidth, more sophistication in the
association of a large quantity of information, and improved personalization.
Convergence with other network (enterprise, fixed) services will come about through the
high session data rate. It will require an always-on connection and a revenue model
based on a fixed monthly fee. The impact on network capacity is expected to be Telecom
Industry.
Significant, Machine-to-machine transmission will involve two basic equipment types:
sensors (which measure parameters) and tags (which are generally read/write
equipment). It is expected that users will require high data rates, similar to those on fixed
networks, for data and streaming applications. Mobile terminal usage (laptops, Personal
digital assistants, and handhelds) is expected to grow rapidly as they become more users
friendly. Fluid high quality video and network reactivity are important user
requirements. Key infrastructure design requirements include: fast response, high session
rate, high capacity, low user charges, rapid return on investment for operators,
investment that is in line with the growth in demand, and simple autonomous terminals.

31
The infrastructure will be much more distributed than in current deployments,
facilitating the introduction of a new source of local traffic: machine-to-machine.

Chapter 3

Company Analysis Aircel

COMPANY ORIGIN
The Aircel Group is a joint venture between Maxis Communications Berhad of Malaysia
and Apollo Hospital Enterprise Ltd of India, with Maxis Communications holding a
majority stake of 74%. Aircel commenced operations in 1999 and became the leading

32
mobile operator in Tamil Nadu within 18 months. In December 2003, it launched
commercially in Chennai and quickly established itself as a market leader a position it
has held since. Aircel began its outward expansion in 2005 and met with unprecedented
success in the Eastern frontier circles. It emerged a market leader in Assam and in the
North Eastern provinces within 18 months of operations. During this period, the
company gained a foothold in 9 circles.
The Company has currently gained a momentum in the space of telecom in India post
the allocation of additional spectrum by the Department of Telecom, Govt. of India for
13 new circles across India. These include Delhi (Metro), Mumbai (Metro), Andhra
Pradesh, Gujarat, Haryana, Karnataka, Kerala, Madhya Pradesh, Maharashtra & Goa,
Rajasthan, Punjab, UP (West) and UP (East). Aircel has won many awards and
recognitions. Voice and Data gave Aircel the highest rating for overall customer
satisfaction and network quality in 2006. Aircel emerged as the top mid-size
Utility company in Business world’s ‘List of Best Mid-Size Companies’ in 2007.
Additionally, Tele.net recognized Aircel as the best regional operator in 2008. With over
15 million customers in the country, Aircel, the fastest growing telecom company in
India, has revved up plans to become a full-fledged national operator.

COMPANY PROFILE: Aircel group is a joint venture between Maxis


Communications Berhad of Malaysia and Apollo Hospital Enterprise Ltd of India, with
Maxis Communications holding a majoritystakesof74%. Aircel commenced operations
in 1999 and became the leading mobile operator in Tamil Nadu within 18 months. In
December 2003, it launched commercially in Chennai a quickly established itself as a
market leader – a position it has held since. Aircel began its outward expansion in 2005
and met with unprecedented success in the Eastern frontier circles. It emerged a market
leader in Assam and in the North Eastern provinces within 18 months of operations. Till
today, the company gained a foothold in 17 circles including Chennai, Tamil Nadu,
Assam, North East, Orissa, Bihar, Jammu & Kashmir, Himachal Pradesh, West Bengal,
Kolkata, Kerala, Andhra Pradesh, Karnataka, Delhi, UP(West),UP(East)and Mumbai.
The Company has currently gained a momentum in the space of telecom in India post
the allocation of additional spectrum by the Department of Telecom, Govt. of India for
13 new circles across India. These include Delhi (Metro), Mumbai (Metro), Andhra
Pradesh, Gujarat, Haryana, Karnataka, Kerala, Madhya Pradesh, Maharashtra & Goa,
Rajasthan, Punjab, UP (West)and UP(East). Aircel has won many awards and
recognitions. Voice and Data gave Aircel the highest rating for overall customer
satisfaction and network quality in 2006. Aircel emerged as the top mid-size utility
company in Business world‘s ‗List of Best Mid-Size Companies’ in 2007. Additionally,
Tele.net recognized Aircel as the best regional operator in 2008. With over 17 million
customers in the country, Aircel the fast growing telecom company in India.

OVERVIEW OF CURRENT MARKET SCENARIO : Aircel mobile services are


one of India's largest providers of integrated communications services. The company has
more than 17million customers and serves individual consumers, enterprises, and
carriers, providing wireless, wire line, long distance, voice, data, and internet
communications services through a number of operating subsidiaries. The company sells
communications and digital entertainment products and services through its chain of
Aircel mobile services retail outlets. The current network expansion undertaken by
Aircel is the largest wireless network expansion undertaken by any operator across the
world. Aircel has a reliable, high-capacity, integrated (both wireless and wire line) and
convergent (voice, data and video) digital network. It is capable of delivering a range of

33
services spanning the entire Infocom (information and communication) value chain,
including infrastructure and services — for enterprises as well as individuals,
applications, and consulting. Today, Aircel is revolutionizing the way India
communicates and networks, truly bringing about a new way of life. We will leverage
our strengths to execute complex global-scale projects to facilitate leading-edge
information and communication services affordable to all individual consumers and
businesses in India. We will offer unparalleled value to create customer delight and
enhance business productivity. We will also generate value for our capabilities beyond
Indian borders and enable millions of India's knowledge workers to deliver their services
globally.

Aircel is a proud recipient of some of the leading awards, CMAI National Infocom
Award2009, Brand Leadership Award by World Brand Congress 2009, and Best
Employer Brand & Innovation in HR & Best Strategy in Line with Business by World
HRD Congress 2009.
Aircel also bagged award in professional categories, for the best Professional in
Marketing, HR & Corporate Communication.

MISSION STATEMENT

We are conditionally committed to exceeding our customer’s 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. We will 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.

34
EXCELLENCE: We are committed to excellence in all what we do. There will
be no place for mediocrity.

WORK: We will promote a work environment that embraces creativity,


promotes empowerment, and encourages team work, innovation, prudent risk
taking, honest and open communication and respectful iconoclasm

QUALITY: the hallmark of our internal and external outputs and processes will
be quality. This will pervade every aspect of our functioning.

Company Analysis Idea

IDEA

COMPANY ORIGIN
IDEA Cellular is a publicly listed company, having listed on the Bombay Stock

35
Exchange (BSE) and the National Stock Exchange (NSE) in March 2007.

IDEA Cellular is a leading GSM mobile services operator in India with 67 million
subscribers, under brand IDEA. It is a pan India integrated GSM operator covering the
entire telephony landscape of the country, and has NLD and ILD operations.
A frontrunner in introducing revolutionary tariff plans,
IDEA Cellular has the distinction of offering the most
customer friendly and competitive Pre Paid offerings, for
the first time in India, in an increasingly segmented market.
From basic voice & Short Message Service (SMS) services
to high-end value added & GPRS services such as
Blackberry, Data card, Mobile TV, Games etc - IDEA is
seen as an innovative, customer focused brand.

IDEA offers affordable and world-class mobile services to


varied segments of mobile users. Be it high end users, or
low-end, price sensitive consumers - IDEA's tariff plans are
designed to suit every pocket.
 
With a vision of delighting its customers while meeting their individual communication
needs anytime, anywhere, IDEA offers seamless coverage to roaming customers
traveling to any part of the country, as well as to international traveling customers
across over 200 countries. IDEA Cellular has partnership with over 400 operators to
ensure that customers are always connected while on the move, within the country or
other parts of the world.

IDEA is the winner of 'The Emerging Company of the Year Award' at The Economic
Times Corporate Excellence Awards 2008-09. 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, India's first truly multinational
corporation. The group operates in 25 countries, and is anchored by over 1,30,000
employees belonging to 30 nationalities. The Group has been adjudged the '6th Top
Company for Leaders in Asia Pacific Region' in 2009, in a survey conducted by Hewitt
Associates, in partnership with The RBL Group, and Fortune. The Group has also been
rated 'The Best Employer in India and among the Top 20 in Asia' by the Hewitt-
Economic Times and Wall Street Journal Study 2007.

36
Service Areas
The Indian telecommunications market for mobile services is divided into 22 "Service
Areas" classified into "Metro", Category "A", Category "B" and Category "C" service
areas by the Government of India. These classifications are based principally on a
Service Area's revenue generating potential.

IDEA is a pan-India operator with services being made available in all parts of the
country.

The telecom service areas have been divided into Established and New Service Areas.
 
Established Service Areas
The established service areas are Delhi, Andhra Pradesh, Gujarat, Maharashtra,
Haryana, Kerala, Madhya Pradesh and Uttar Pradesh (West).

Licenses for the Maharashtra and Gujarat Service Areas were awarded in December
1995, with network rollout and commercial launch achieved in 1997. In January 2001
the mobile operations in Andhra Pradesh Service Area were integrated with IDEA
through a merger with Tata Cellular Limited.

In June 2001, the mobile operations in Madhya Pradesh Service Area were fully
integrated with IDEA through an acquisition of RPG Cellcom Limited. In October
2001, the license for Delhi Service Area was acquired during the fourth mobile license
auction, with network rollout and commercial launch in November 2002.

In January 2004, Escotel Mobile Communications Private Limited ("Escotel"), was


acquired with its original licenses in the Service Areas of Haryana, Uttar Pradesh
(West) and Kerala. All these Service Areas were re-branded and integrated with IDEA
in June 2004.
 
New Service Areas
The New Service Areas are Uttar Pradesh (East), Rajasthan, Himachal Pradesh, Bihar,
Mumbai, Karnataka, Punjab, Orissa, Chennai & Tamil Nadu, Jammu & Kashmir,

37
Kolkata & West Bengal, and Assam & North East.

Licenses for Uttar Pradesh (East), Rajasthan and Himachal Pradesh were acquired
through the acquisition of Escotel (Escorts Telecommunications Limited).

Idea launched its services in Mumbai and Bihar in 2008. The Mumbai launch was the
largest Metro City launch in India. In Bihar, Idea acquired 500,000 subscribers in just
over 100 days.

Brand Idea was launched in Karnataka and Punjab, through the acquisition of Spice
Communications.

The company has expanded its pan-India presence through service launches in Orissa,
Chennai & Tamil Nadu, Jammu & Kashmir, Kolkata & West Bengal, and the North
East states in FY10.

Idea offers seamless coverage to roaming customers nationally or internationally.

Idea’s partnership with over 400 operators ensures that customers are always connected
while on the move, within the country or other parts of the world. Idea is winner of ‘the
Emerging Company of Year Award’ at the economic Times Corporate Excellence
Awards 2009. The prestigious Avaya Global Connect Award for being the ‘Most
Customer Responsive Company’ Telecom sector in the year 2010

Company Analysis Uninor

38
Uninor is a mobile telephony and network operator in India. The Company holds a pan-
India UAS license to offer telecommunications services in each of India’s 22 circles. It
has also received spectrum to roll out these services in 21 of the 22 telecom circles.
From November 2009, Uninor will be owned 67.25% by Norwegian telecom giant
Telenor, and 32.75% by UNITECH. Uninor has started mobile services in India at the
end of 2009, focusing on the GSM technology.

The company Unitech Wireless was until 2009 a subsidiary of Unitech Group, holding a
wireless services license for all 22 Indian telecom circles since 2008. In early 2009,
Unitech Group and Telenor agreed on a majority take-over by Telenor of Unitech's
wireless business, including Unitech Wireless' national-wide mobile license. By March,
May and November, Telenor acquired a 33%, 49% and 60% stake in Unitech Wireless,
respectively. In September, the mobile operation changed its name to Uninor. On
October 19 the Indian Cabinet Committee of Economic Affairs (CCEA) announced that it
has approved Telenor's acquisition of up to 74% in Unitech Wireless, and the
shareholder's agreement sets a 67.25% Telenor ownership in Uninor.

Uninor is India's eighth nation-wide mobile operator, in a competitive landscape of 13


nation-wide or regional mobile operators. The company is targeting an 8 % pan-Indian
market share, and opening of one million retail points and breaking even on EBITDA
within three years. It will provide mobile communication and Value Added Services.

In order to reduce time-to-market, Uninor will outsource infrastructure and back-end


services to partner organizations with established core competencies. The operational
model is low-cost with a gradual network-build up, infrastructure sharing, GSM

39
equipment at competitive cost, full-scale IT-outsourcing and long term cost and capex
efficiency.

Uninor will organize with headquarters just outside Delhi (Gurgaon), and 11 regional
hubs covering one or more of the total of 22 telecom circles.

To quickly launch mobile services only nine months after the foundation of the new
company, Uninor has entered into network and base station service agreements with
partners. Tower sharing agreements are concluded with Wireless-TT Info Service
Limited and Quippo Telecom Infrastructure Limited. Telecommunications, network and
radio equipment is to be supplied by Alcatel-Lucent, Huawei Technologies India, Nokia
Siemens Networks and Ericsson. The company's IT services and infrastructure is to be
shared with Wipro Technologies.

Our promise

Our vision is simple, yet powerful. We exist to help you get the full benefit of
communications services in your daily lives. We’re here to help.
This means providing services that bring solutions to your everyday endeavors and
needs, enabling your future aspirations to come even closer.
We are driven by this promise to you.

Company Analysis Tata Docomo

40
Tata DoCoMo : Tata DOCOMO is Tata Teleservices Limited's (TTSL) telecom
service on the GSM platform-arising out of the Tata Group's strategic alliance with
Japanese telecom major NTT DOCOMO in November 2008. Tata Teleservices has
received a pan-India license to operate GSM telecom services, under the brand Tata
DOCOMO and has also been allotted spectrum in 18 telecom Circles. TTSL and has
already rolled out its services in various circles.
The launch of the Tata DOCOMO brand marks a significant milestone in the Indian
telecom landscape, as it stands to redefine the very face of telecoms in India. Tokyo-
based NTT DOCOMO is one of the world's leading mobile operators-in the Japanese
market, the company is clearly the preferred mobile phone service provider in Japan with
a 50 per cent market share.
NTT DOCOMO has played a major role in the evolution of mobile telecommunications
through its development of cutting-edge technologies and services. Over the years,
technologists at DOCOMO have defined industry benchmarks like 3G technologies, as
also products and services like the i-modeTM, mobile payment and a plethora of
lifestyle-enhancing applications. Today, while most of the rest of the industry is only
beginning to talk of LTE technology and its possible applications, DOCOMO has
already started conducting LTE trials in physical geographies, not just inside
laboratories!

41
DOCOMO is also a global leader in the VAS (Value-Added Services) space, both in
terms of services and handset designs, particularly integrating services at the platform
stage. The Tata Group-NTT DOCOMO partnership will see offerings such as these
being introduced in the Indian market under the Tata DOCOMO brand.
Tata DOCOMO has also set up a 'Business and Technology Cooperation Committee,
comprising of senior personnel from both companies. The committee is responsible for
the identification of key areas where the two companies will work together. DOCOMO,
the world's leading mobile operator, will work closely with the Tata Teleservices
Limited management and provide know-how on helping the company develop its GSM
business.
Despite being a late entrant, Tata Indicom, TTSL's CDMA brand, has already
established its presence and is the fastest-growing pan-India operator. Incorporated in
1996, Tata Teleservices Limited is the pioneer of the CDMA 1x technology platform in
India. Today, Tata Teleservices Limited, along with Tata Teleservices (Maharashtra)
Ltd, serves over 37 million customers in more than 320,000 towns and villages across
the country offering a wide range of telephony services including Mobile Services,
Wireless Desktop Phones, Public Booth Telephony and Wire-line Services.

ORGANIZATION CHART OF AIRCEL

42
Circle Head

Marketing & Custo commerci Adminis


al Finance Revenue HR atrion Vigilance
Sales mer Techni Assurance
cal
Servi
ce
Dept

Chapter 4
Product Offered By Aircel, Idea, Tata Docomo
&Uninor in Allahabad

43
Product offered by Aircel:

 Prepaid paid plan:


 Postpaid (in near future)
 Roaming Services
 Value added services

Different type of Prepaid Plan:


Start up kit Rs.49:
Start up kit Rs.99:
First Recharge Voucher:
Business card- rate cutter
Pay per pulse plan for existing subscribers
Recharge vouchers
E .Recharge
New ISD Rates

Different type of Postpaid Plan:


Add on Packs
Advance Rental 599
Advance Rental 899
Budget 99
Super 149
Super 199
Tock Big 1199

44
Winner 299
Winner 499
Winner 749
Roaming Services:
Prepaid
Roaming travel packs
Value added services
Job Alerts: - Get Jobs from the best sources like naukri.com, monsterindia.com,
clickjobs.com, sulekha.com, timesjobs.com and lot more!
To get started, just send START JOBS as a SMS to 58010(Toll-free)
Charges for the subscription pack are Rs.30 for 30 days
Music on Call: - Send SMS as MCA <space> R to 58999 (Toll free) or Dial *999*1#
(Toll Free) Subscription Charge: Rs. 15/month.

Aircel Pocket Internet: - Just SMS PI To 121 (Toll Free)

Voice Station: - Voice Station (Call 55500)

Music Messaging and Ringtones, Prayers, Astrology Service, News, Sports, Jokes
Calls to 55500 services will be charged at Rs.6/min.

Subscription services:-
MMS: - Just send START<space> SMS to 121 (Toll Free)
Miss Call Alerts: - Send SMS as MCA <space> R to 58999 (Toll free) or Dial *999*1#
(Toll Free) Subscription Charge: Rs. 15/month.
Dialer Tunes: - Dialer Tune is a special feature through which the calling party can hear
a song or music instead of the default "tring tring" tone
Dialer Tunes Cards: - All Aircel prepaid and postpaid customers can recharge with this
coupon by dialing the special IVR number 5300003 and entering the 16 digit secret PIN
number. You can also recharge by sending SMS DTC <space> 16 digit PIN number to
5300003 (toll free).
Live Astrology: - Astrology service on short code 55315 is a voice based LIVE
SERVICE, where AIRCEL customers can call at Rs. 9/min and talk to formally train &
experienced ASTROLOGERS.
Details of charges: Live Astrology service on 55315 - Rs. 9/min (60 second pulse).

45
Doctor on Call:-

Doctor-on-call' provides access to quality medical advice from the comfort of your
home/ office. Gets instant advice on medical/ health and wellness queries from a panel of
doctors specializing in various fields?
Doctor on Call service on 54887 - Rs. 9/min (60 second pulse).

Product offered by Idea:

 Prepaid paid plan:


 Postpaid
 Value added services
 Roaming
 Call Management Services

Different type of Prepaid paid plan:


Special recharge
Idea super plan
Different type of Postpaid paid plan:
Wow200
Idea Super PSB
Idea Super PMB
Super Second 200
Super Second FV 350
Super 50
Super 50 FV
More Value 199
More Value 299

46
More Value 499
Easy 786
East 150
Easy 400
ARP
Value Added Services:

Roaming
National roaming
International roaming

Call Management Services


Postpaid plan:
Caller Line Identification Presentation (CLIP)
Call Hold / Call Wait
Call Conference (CC)
Caller Line Identification Restriction (CLIR)
Itemised Billing
Short Messaging Service
Call Divert (CD)
Prepaid plan:
Caller Line Identification Presentation (CLIP)
Call Hold / Call Wait

47
Short Messaging Service
Call Divert
Call Conference

Product offered by Tata DoCoMo:

Prepay plan:

Post paid plan:

Roaming
GPRS: GPRS is the Mobile Data service that gives you the power to enjoy continuous
wireless connection to Internet even when you are on the move. You can now get instant

48
access to your favorite web sites, social media platforms, entertainment services and
other web applications. Also, gaming is no longer restricted to the basic snake games.
You can seamlessly download and enjoy all types of games.
And with GPRS Service from Tata DOCOMO, the advantages are as wide as your
imagination takes you. Once activated the connectivity will provide you 24X7 online
presence 365 days. Use it wherever you go and whenever you want.
Tariffs

Do Not Disturb: Simply SMS START DND to 1909 (toll free) and in case you want to
de-register yourself from the NDNC registry SMS STOP DND to 1909 (toll free).
Once you have registered, please give us 45 days to remove
your name from our list.

Recharge Vouchers
Local tariff vouchers
Special tariff vouchers
Tilk time vouchers
SMS Packs
GPRS Packs
Combo Packs

Product offered by Uninor

49
Prepaid plan

24x7 changing Discount plan: The 24x7 changing discount plan is a first of its
kind plan from Uninor that gives us the unique benefit of changing discount rates
on calls, which keep changing depending on our locations and time of the day.
And throughout, our mobile screens keep flashing these ever changing discounts.
The following are details of this tariff plan.

Talk unlimited plan:


Starter kits:
Base tariff:
Value packs:

My connect9, My connect 90, i gain-24x7 changing Discount plan Rs.48,i gain-


free Talk time pack 37, Talk time pack 38, Talk time pack 197.i gain- free talk
time pack 198,I gain 24 (National SMS Pack),I gain 32- UP East& Bihar,
igain7,I gain13,I gain16,I gain 32,i gain49,

Recharge:

50
Note: Cost of all services of al cellular companies of India is changes time to
time due to competition and it guided from Telecom Regulatory authority of
India.

51
Chapter 5

Comparison among Telecom Sector on services

Aircel. Idea, Tata Docomo, Uninor

Revenue & ARPU - Company wise


Jan-Mar'10 & Oct-Dec'09
      Revenues   ARPU
      Rs. Crores   Rs.
10%,
8%,6%
10%, 8%,6% ARPU
Average Revenu
Revenue Average (E=C/D) %
Monthly e Share
Name of Share Monthly (Rs) Change
Service Revenu paymen
the payment for Revenue previous over
Area e (C) t for
Company previous (C) (Rs quarter previous
(Rs current
Quarter crores) Oct- quarter
crores) Quarter
(Rs crores) Dec'09
(Rs
crores)
Aircel
Limited UP (E) 0.51 2.14 0.94 3.91 44.51 12.08%
      2.14   3.91 44.51 12.08%
Idea
Cellular UP (E) 9.15 38.14 9.63 40.12 128.24 -10.56%

Uninor UP (E)     0.50 2.09    


Tata Docomo data is not available
Source: www.coai.in

52
GSM Cell Figure in 2010

Tata Docomo data is not available

Subscriber Base of wireless operators in rural area

Uninor data is not available

53
Review of wireless (GSM &CDMA Services)
Wireless Industry crossed 391 million subscribers mark at the end of the financial year
2008-2009. The total subscriber base of 391.76 million comprise of 297.26(75.88%)
million GSM and 94.50(24.12%) million of CDMA subscribers. During the financial year
of 2008-2009 around 130.69 million subscribers were added registering a growth rate of
50.06% as compare to 58.12% during the year of 2007-2008. The subscriber growth of
wireless operators (GSM & CDMA) from March 2004 to 2009 is depicted in figure.

Figure: market share of wireless operators in % as on 31st March 2009

Source: www.trai.gov.in

Su
bscribers are base in million and market share in (%) of GSM operators as on 31 st March
2009.

54
Wireless services:
1. Service providers share in net additions during the month of May- 2010

Sources: www.trai.gov.in
2. Services provider wise Market share as on 31st May 2010

Sources: www.trai.gov.in

55
3G &BWA AUCTION WINNERS
The much awaited 3G & BWA auctions were held in April-May 2010.Commercial
services for 3G would start only from 1st September onwards, whereas BWA services
may be started before September. Public sector operators (BSNL & MTNL) have
already been given one slot of 3G spectrum of 2.1 GHz band in all 22 circles and have
started services and one slot in 2.5 GHz band from BWA services in all 22 circles and
have started launching services.
3G WINNERS

BWA WINNERS

56
Comparative analysis

1st
Company Sim 2nd Other Slabs
FR ATM ATM CEF NLC MOP Customer Benefit Remarks
Name Cost FRC Incentive (Max)
C
Rs. 24 TT + 1p/sec + any
10 24 7     0   27 -4 15 recharge will be of FTT
for 1 month  
Rs. 48 TT + 1p/sec + any
Idea 10 48 15     0   27 12 20 recharge will be of FTT
for 2 months  
Rs. 96 TT + 1p/sec + any
10 96 30     0   27 45 60 recharge will be of FTT
for 3 months  
TATA 17.5 54 10     10   33 -12 15 Rs. 60 TT + 1p/sec  
Docomo 17.5 56 10     10   33 -9.5 20 Rs. 25 TT + 1p/sec(D 2 D)  
10% to
60%
20 48 15 50 25 15   58 58 65 Rs. 65 TT + 50p/min discount
on local
calls
Uninor
10% to
60%
700 min local on others
20 48 15 197 70 15   160 160 197 discount
+ 2000 min U2U + Rs. TT
on local
calls
Aircel 15 10   50   7   30   10 125 full T.Time  

Chapter 6

57
Data Analysis & Interpretation

 Data interpretation & finding of retailer survey


I have conducted survey in important town of Allahabad, Allapur. It is very important
market of telecom. Allapur is known as residential area and famous for student’s area.
Various type of coaching institutions is available.
I have done my project with the help of 50 retailers of Allapur.
Results are as follows:
Q.1. which company provides easy activation services?
Aircel ( ) Idea ( ) Tata Docomo ( ) Uninor ( ) any others ( )

ALLAPUR

58
Q.2. which company agents visited very frequently in shops?

Aircel ( ) Idea ( ) Tata Docomo ( ) Uninor ( ) any others ( )

ALLAPUR

59
Q. 3. Which company’s customers are more satisfied? And why
Aircel ( ) Idea ( ) Tata docomo ( ) Uninor ( ) any others ( )
………………………………………………………………

ALLAPUR

60
Q.4 which company has better technical support system?
Aircel ( ) Idea ( ) Tata docomo ( ) Uninor ( ) any others ( )

ALLAPUR

61
Q.5 which company gives better rewards to retailers for their services?
Aircel ( ) Idea ( ) Tata docomo ( ) Uninor ( ) any others ( )

ALLAPUR

62
Q.6 which company having better internet facilities?
Aircel ( ) Idea ( ) Tata docomo ( ) Uninor ( ) any others ( )

ALLAPUR

63
Q7. Which company’s agent properly communicate about the scheme?
Aircel ( ) Idea ( ) Tata Docomo ( ) Uninor ( ) any others ( )

ALLAPUR

64
Q8. Which companies have better reimbursement facilities?
Aircel ( ) Idea ( ) Tata Docomo ( ) Uninor ( ) any others ( )

ALLAPUR

65
Q.9 which companies take quick action on your complain?

Aircel ( ) Idea ( ) Tata Docomo ( ) Uninor ( ) any others ( )

ALLAPUR:

66
Q10. What is your suggestion for Aircel Company regarding services?

67
…………………………………………………………………

This was open question for retailers under this question they can give various
Suggestion for the Aircel companies so that we can improve on it.
Analysis &recommendation: In area retailers were recommended for improve in
Awareness in the mind of customers through more hooding, pamphlet browsers.
Distributers should more cooperative with retailers and give importance to small
retailers. Some more marketing should be needed.

SUGGESTIONS &RECOMMENDATIONS :-

By going through all the study there are some recommendations that can make the study
more effective as well as can create a good results for “comparative study of telecom
services in Allahabad”. These recommendations are as follows:-

 Plans should not be change regularly so that more customers can use it, and they
cannot become confuse with schemes.

 More promotional strategies should be used in Allapur area as very less


awareness of all services in this area.

 Distribution of promotion material should be regular and given to retailers.

 Aircel should improve their visibility. During the survey period I found very few
shops and other, points where advertisement has been done.

 Distributer should provide more assistance to retailers.

Limitation

Telecom is a vast subject. It is not possible to provide information regarding all the
different types of services which provides different benefits. The project would have
been much better if the comprehensive study of all the different types’ services provided
by different companies is undertaken. No study is free from the limitations, so does
ours. There are many limitations that we encountered during the course of our
study and research process

 Our study is restricted to Allapur area only.

68
 Our study is restricted to four mention telecom companies; if they would
have included other telecom companies then the wider analysis could
have been done.
 Some questions regarding the attitude of the retailers also depends on the
mood of the respondent and at the time during which they were
interviewed
 Our study is conducted in month of June & July. This is very hot season
so that it was difficult to visit between 10 am. To 5 pm.

CONCLUSION

The summer internship in Aircel is very good experience for me. I have done my full
effort on it and learn lots of thing which will be helpful in future for career development.
This training gives us an exposure to professional working culture prevailing in
industries, which is very important for management students. No doubt telecom sector
having very good opportunity in Indian market, this project is helpful to understand on
various opportunities, with the help of comparative study this project will helpful for
organization to provide better services as well as increase sales. I have included various
techniques for growth of business. I am expecting that this project will helpful for Aircel
organization. In Allahabad area we see that which telecom company is performing better
than other. Aircel should change some more strategies to become number one. Uninor,
Idea, Airtel, Reliance, Vodafone are big threat for Aircel now a days.
I again thanks to everyone who has contributed to make this experience truly complete &
stimulating.

69
Appendix
Opinion Survey
Dear Sir
We are from management institute and are conducting a survey on
telecom services, we request you kindly spare few minutes of your valuable
time and
Fill up the following questionnaire by marking the most appropriate answer;

1. Which company provides easy activation services?


Aircel ( ) Idea ( ) Tata Docomo ( ) Uninor ( ) any others ( )

2. Which company agents visited very frequently in shops?


Aircel ( ) Idea ( ) Tata Docomo ( ) Uninor ( ) any others ( )

3. Which company’s customers are more satisfied? And why?


Aircel ( ) Idea ( ) Tata docomo ( ) Uninor ( ) any others ( )
……………………………………………………………………

4. Which company has better technical support system?


Aircel ( ) Idea ( ) Tata docomo ( ) Uninor ( ) any others ( )

5. Which company gives better rewards to retailers for their services?


Aircel ( ) Idea ( ) Tata docomo ( ) Uninor ( ) any others ( )

6. Which company having better internet facilities?


Aircel ( ) Idea ( ) Tata docomo ( ) Uninor ( ) any others ( )

7. Which company’s agent properly communicate about the scheme?


Aircel ( ) Idea ( ) Tata Docomo ( ) Uninor ( ) any others ( )

8. Which companies have better reimbursement facilities?


Aircel ( ) Idea ( ) Tata Docomo ( ) Uninor ( ) any others ( )

9. Which companies take quick action on your complain?

70
Aircel ( ) Idea ( ) Tata Docomo ( ) Uninor ( ) any others ( )

10. What is your suggestion for Aircel Company regarding services?


…………………………………………………………………

Important Website
 http:// www.trai.gov.in
 http://www.coai.in
 http://en.wikipedia.org
 http://www.aircel.com
 http://www.tatadocomo.com
 http://www.ideacellular.com
 http://www.uninor.in
 http:// www.ibef.com
http://www.scribd .com
 www.google.com
Newspaper

 Times of India
 The Economic Times

71

You might also like