Telecom Sector in Gujarat

ABBREVIATION LMA…………………...Last Mile AccessIA……………………...International AccessNLDA………………....National Long Distance AccessDOT…………………..Department Of TelecommunicationsTELCOS……………...Telephone CompaniesGDP…………………..Gross Domestic ProductMTS…………………..Mobile Telephone ServiceMTNL………………...Mahanagar Telephone Nigam Ltd.VSNL…………………Videsh Sanchar Nigam Ltd.BSNL…………………Bharti Sanchar Nigam Ltd.DTS…………………..Department of Telecom ServicesTRAI…………………Telecom. Regulatory Authority of IndiaTDSAT………………Telecom Disputes and Settlement Appellate TribunalILD…………………..International Long DistanceDLD…………………Domestic Long DistanceNLD…………………National Long DistancePCO…………………Public Call OfficeNTP………………….National Telecom PolicyGMPCS..…………...Global Mobile Personal Cellular ServicesIT…………………….Information TechnologyISDN…………………Integrated Services Digital NetworkISP…………………...Internet Service ProviderMoU…………………Memorandum of UnderstandingPOPs…..……………Points of PresenceCDMA………………Code Division Multiple AccessOFC…………………Optical Fiber CableFIPB………………...Foreign Investment Promotion BoardFSO…………………Free Space OpticsDSL…………………Digital Subscriber LineGbps………………...Gigabit per secondsNASSCOM…………National Association of Software and Services Companies

CVD…………………Counter Veiling Duty

ARPU……..…………Average Revenue Per Unit

TTRT…………………Transmission Tower For Radio Telephony

GSM…………………Global system for mobile communication

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ABSTRACT

We undertook this project to understand the Cellular Industry as a whole. At present Telecom Sector is in boom, every day there are new changes happening in the industry. This project has taught us that how company makes strategy to cope with the continuous changes, whether these changes are in Technology, or in the pricing structure or in the legal policies or in the terms of customer preferences. We also came to know, that the telecom market is having very high Entry as well as Exit barriers, due to the increased number of players and strong rivalry among existing players.

The cellular operators are facing the biggest threat ever by the CDMA (Code Division Multiple Access), & WLL (Wireless In Local Loop) i.e. Reliance Infocom and Tata Tele services. Due to cheaper rates, better technology & latest innovations the cellular operators are coming with the new schemes and decreased tariffs to retain the customers so they do not switch. Introduction of Satellite phones by Iridium Inc. may also affect the cellular market. Even though the technological changes have kept sweeping across the country’s telecom landscape with the introduction of GSM (Global System for mobile Communication) and CDMA (Code Division Multiple Access) services, the regulation is still in a flux. The issues involved are the existence of different tariffs rates between the two services as well as the types of services two warring groups can provide. And, with the entry of Reliance group the competition just has been increased.

Indian cellular industry is in full of its color with boom seen in Indian economy. With the entry of major players, major up fold has been seen in cellular industry since last 8-10 years. Government continuous intervention in this industry is major factor that has affected positively & negatively for different technological players. Today’s competitive environment in cellular industry has inspired us to study this industry form strategic point of view. We had undertaken this project for our learning as well as to fulfill academic guideline. Objective of our study is “The core objective of the project is to understand the Cellular industry of Gujarat. To achieve objective of our study we had given equal importance to primary & secondary data collection and its analysis & conclusion. In our research secondary data collected from various magazines, newspapers, internet, library, reports of different companies etc. And primary data were collected from Ahmedabad.

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INTRODUCTION

The topic of the project is the Assessment of distribution network for Idea in

Ahmedabad. In such project actually we try to analyze the strength of the idea

cellular with other competitors in the market.

The objective of this project was to assess market share, to analyze effectiveness of

idea’s representative, to study and analyze the reach of Idea’s distribution network

vis-à-vis other competitor.

For such the survey of 100 retailers had been made and with filling up of the

questionnaires, try to analyze the distribution effectiveness and the distribution

reach and its depth in the Ahmedabad.

With the use of different types of the charts and the statistical tool, we try to

analyze the facts of the Ahmedabad for all companies.

An assessment of the Distribution Network of idea’s services will help the

company in knowing the strength and weaknesses of the distribution network in

Ahmedabad vis-à-vis competitor. After the project, we are able to give suggestions

to the company on the basis of field survey and its result.

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OBJECTIVES AND SCOPE

To assess market share of the Idea vis-à-vis other competitor.

To analyze effectiveness of idea’s representative vis-à-vis other competitor.

To study and analyze the reach of Idea’s distribution network vis-à-vis other

competitor.

To assess the distribution depth of Idea vis-à-vis other competitor.

Scope

The study will be done for academic purpose – and not done as a professional researcher for the company. So that Study is very vast, but I have to restrict myself to only limited area. The Research study conducted herewith is restricted to the market of Ahmedabad only.

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LIMITATIONS OF RESEARCH

Some limitations in terms of research resources and manpower couple with the fact

that the sample size and the quality of respondents were limited due to the

constraint of time, hence there would be some variance from the actual scenario.

This research study would provide only a micro insight into the dynamic factors

that rule the Ahmedabad telecom distribution network.

To this extent, we would like to state that the research should not be treated as

conclusive and there is a further scope of improvement for research. A wider

sample base and a broader geographical territory (preferably a Circle of Telecom)

would be more effective in drawing a relatively more accurate research picture.

This has been a very satisfying research experience for the two of us and we would

like, if possible to extend and compile a macro profile for this research topic.

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RESEARCH METHODOLOGY

Type of the study

The type of study we will use would be Descriptive study.

Data sources:

The data to be used for the study would be both secondary and

primary data.

The secondary data would be necessary to study the distribution

Network. It would be obtained from Database of the company, web

sites etc.

The primary data would be obtained through survey of pre-paid

dealers of idea cellular, which would be conducted through personal

interview & filling-up of the questionnaires.

Sampling design

Size of the sample:

100 Pre paid Dealers

Sampling procedure:

The sampling procedure would be stratified random sampling.

Research instrument:

The research instrument would be an interview schedule with filling up the questionnaires. It would be consist of 10 questions to keep it short.

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INDUSTRY PROFILE

Telecommunications is the one of the fastest growing service industries of the word. While the accent of growth on the value added services, such as email, cellular phones etc in the developed countries, the thrust is on improving basic role in spurring growth, especially industrial and services, in any economy.

The last two decades has witnessed a restructuring of the entire sector across the globs, in terms of privatization and competition. Opening up of economies and privatization in the developing countries has triggered an influx of foreign capital and technology into the telecom sector.

DEFINING CELLULER SERVICES:

Cellular Service is a service, which enables two-way, mobile, wireless communication via a portable handset. Area covered by the service provider is divided into cells, each with a Radio Base Station (RBS) connected to a Central Switching Center (CSC) which monitors the entire system. In the midst of a call, if a subscriber moves across cells, CSC ensures handing over of the call between the adjacent RBS and the call is uninterrupted.

Cellular Technology: The technology that gives a person the power to communicate anytime, anywhere – has spawned an entire industry in mobile growth, success and efficiency of any business/ economy. The most prevalent wireless technology in the world today, is GSM.

The GSM association (Global System for Mobile Communications) was instituted in 1987 to promote and expedite the adoption, development and deployment and evolution of the GSM standard for digital wireless communication. The Association was formed as a result of a European Community agreement on the need to adopt common standards suitable for cross border European mobile communications.

Starting off primarily as a European Standard, the Group Special Mobile as it was then called, soon came to represent Global System for mobile communications as it achieved the status of a worldwide standard. The GSM membership has grown exponentially since 1992.

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Overview – The Indian Telecommunication Industry- Past, Present &

The Future…

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The factors behind the wireless revolution in India are no different from those prevailing globally and can be listed as follows:

1. Industry deregulation & liberalization has ushered in increased competition & led to growth

The Indian telecom industry has come of ages in the field of regulations. It started with the NTP in 1994. Between the years 1994 & 1998 TRAI was established as an independent regulatory body, the wireless licenses were allotted to private operators and the wire line services were opened up to competition.

Between 1999 & 2002 new telecom policy was introduced and there was entry of third & fourth operators in the wireless services. Free competition was allowed in wire line and first round of tariff rebalancing was done. The operators moved from fixed to revenue-sharing license fee structure. Then in the year 2003-2004 the unified license regime was introduced to enhance the competition and create a level playing field. Transfer of wireless licenses was allowed among the operators and intra-circle wireless mergers were also allowed.

2. Declining tariffs have made wireless & Handset prices extremely affordable

The intense competition has been instrumental in driving down the wireless tariffs. Entry of 3rd and 4th GSM operators in each circle, and CDMA wireless operators, has created a new floor for local & long distance tariffs. The average peak wireless call tariff per minute has come down from Rs. 16.8 in 1998 to Rs. 6 in 1999 to Rs. 4 in 2002 and Rs. 1.5 at present. There has also been a crash in the handset prices by more than 70% over the last 4-5 years, and the operators have coupled it with easy financing schemes and bundling of handsets with connections. With the government reducing the custom duties on the handsets, handset prices are expected to come down even further, leading to higher new demand and replacement demand.

3. Prepaid offerings have driven mass penetration of wireless

Prepaid offerings have created a surge in wireless subscribers, mirroring the trend in other developing countries. The operators are aggressively promoting prepaid cards and have spurred the adoption of wireless by the masses. From the budget-conscious lower middle class households to college students to low income groups, people are increasingly seeing prepaid as a hassle-free way of going wireless. The

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prepaid share has increased from 26% in 1999 to 60% in 2002. However, in 2003 prepaid did not increase its share of the total subscriber base, despite the addition of 17 million new subscribers because all the 6 million new subscribers added by CDMA wireless were postpaid subscribers. With the introduction of the CDMA prepaid in 2004 the prepaid share will increase to over 75% in coming years.

4. Implementation of CPP regime has given the subscriber greater control over costs

The implementation of CPP regime was a water-shed event in the industry. It has greatly increased the affordability of going wireless, as subscribers don’t have to pay for incoming calls, and can control their telecom costs better. The other benefits of CPP are lower costs for wireless subscribers, higher wireless usage, and higher penetration of wireless.

Subscriber numbers are expected to more than double in the period 2001-2006, from 35 million in March 2001 to about 85 million in 2006. India will mirror the global trend of high growth rates in mobile vis-à-vis fixed-line users (40 per cent CAGR in mobile services against 16 per cent in the fixed-line segment). However, with fixed-line teledensity in India being at a very low 4 per cent, absolute growth in fixed-line services will lead additions in mobile subscribers over the next 10 years. Despite the high projected growth, teledensity in 2010 is expected to be 11.5 per cent, falling short of the NTP99 target of 15 per cent. Revenues will also grow, albeit slowly, in the light of significant reductions in tariffs. By 2008, telecom is expected to be a Rs 76,000-crore sector, contributing 5.4 per cent to India’s GDP.

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Teledensity 12.90%Basic phone lines 65 millionTelephone exchanges 38,000Cellular subscribers 129.4 millionBasic telecom subscribers incl. WLL 16.9 millionPCO (Public call Office) 2255980Paging subscribers 0.6 millionOptical fiber cable (OFC) route length 579500 KmsTelevision sets 100 millionPCs 9 millionCable TV Connections 45 million

GSM and CDMA subscription numbers:

Year

GSM

Subscribers

(millions)

GSM

Annual

growth

CDMA

Subscribers

(millions)

CDMA

Annual

growth

2000 3.1 94% - -

2001 5.05 76% - -

2002 10.5 91% 0.8 -

2003 22.0 110% 6.4 700%

2004 37.4 70% 10.9 70%

2005 58.5 57% 19.1 75%

2006 105.4 80% 44.2 131%

2007 129.0 71% 85.0 92%

The telecom network in India is the third largest network in the world meeting upwith global standards. Presently, the Indian telecom industry is currently slated to an estimated contribution of nearly 1% to India’s GDP.

Major Players

There are three types of players in telecom services:

State owned companies (BSNL and MTNL)

Private Indian owned companies (Reliance Infocomm, Tata Teleservices,)

Foreign invested companies (Hutchison-Essar, Bharti Tele-Ventures,

Escotel, Idea Cellular, BPL Mobile, Spice Communications)

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BSNL

On October 1, 2000 the Department of Telecom Operations, Government of Indiabecame a corporation and was renamed Bharat Sanchar Nigam Limited (BSNL).BSNL is now India’s leading Telecommunications Company and the largest publicsector undertaking. It has a network of over 45 million lines covering 5000 townswith over 35 million telephone connections.

The state-controlled BSNL operates basic, cellular (GSM and CDMA) mobile, Internet and long distance services throughout India (except Delhi and Mumbai). BSNL will be expanding the network in line with the Tenth Five-Year Plan (1992-97). The aim is to provide a telephone density of 9.9 per hundred by March 2007. BSNL, which became the third operator of GSM mobile services in most circles, is now planning to overtake Bharti to become the largest GSM operator in the country. BSNL is also the largest operator in the Internet market, with a share of 21 per cent of the entire subscriber base.

BHARTI

Established in 1985, Bharti has been a pioneering force in the telecom sector with many firsts and innovations to its credit, ranging from being the first mobile service in Delhi, first private basic telephone service provider in the country, first Indian company to ovide comprehensive telecom services outside India in Seychelles and first private sector service provider to launch National Long Distance Services in India. Bharti Tele-Ventures Limited was incorporated on July 7, 1995 for promoting investments in telecommunications services. Its subsidiaries operate telecom services across India. Bharti’s operations are broadly handled by two companies: the Mobility group, which handles the mobile services in 16 circles out of a total 23 circles across the country; and the Infotel group, which handles the NLD, ILD, fixed line, broadband, data, and satellite-based services. Together they have so far deployed around 23,000 km of optical fiber cables across the country, coupled with approximately 1,500 nodes, and presence in around 200 locations. The group has a total customer base of 6.45 million, of which 5.86 million are mobile and 588,000 fixed line customers, as of January 31, 2004. In mobile, Bharti’s footprint extends across 15 circles.

Bharti Tele-Ventures' strategic objective is “to capitalize on the growth opportunities the company believes are available in the Indian telecommunications market and consolidate its position to be the leading integrated telecommunications

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services provider in key markets in India, with a focus on providing mobile services”.

MTNL

MTNL was set up on 1st April 1986 by the Government of India to upgrade the quality of telecom services, expand the telecom network, introduce new services and to raise revenue for telecom development needs of India’s key metros – Delhi, the political capital, and Mumbai, the business capital. In the past 17 years, the company has taken rapid strides to emerge as India’s leading and one of Asia’s largest telecom operating companies. The company has also been in the forefront of technology induction by converting 100% of its telephone exchange network into the state-of-the-art digital mode. The Govt. of India currently holds 56.25% stake in the company. In the year 2003-04, the company's focus would be not only consolidating the gains but also to focus on new areas of enterprise such as joint ventures for projects outside India, entering into national long distance operation, widening the cellular and CDMA-based WLL customer base, setting up internet and allied services on an all India basis.

MTNL has over 5 million subscribers and 329,374 mobile subscribers. While the market for fixed wireline phones is stagnating, MTNL faces intense competition from the private players—Bharti, Hutchison and Idea Cellular, Reliance Infocomm—in mobile services. MTNL recorded sales of Rs. 60.2 billion ($1.38 billion) in the year 2002-03, a decline of 5.8 per cent over the previous year’s annual turnover of Rs. 63.92 billion.

RELIANCE INFOCOMM

Reliance is a $16 billion integrated oil exploration to refinery to power and textiles conglomerate (Source: http://www.ril.com/newsitem2.html). It is also an integrated telecom service provider with licenses for mobile, fixed, domestic long distance and international services. Reliance Infocomm offers a complete range of telecom services, covering mobile and fixed line telephony including broadband, national and international long distance services, data services and a wide range of value added services and applications. Reliance IndiaMobile, the first of Infocomm's initiatives was launched on December 28, 2002. This marked the beginning of Reliance's vision of ushering in a digital revolution in India by becoming a major catalyst in improving quality of life and changing the face of India. Reliance Infocomm plans to extend its efforts beyond the traditional value chain to develop

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and deploy telecom solutions for India's farmers, businesses, hospitals, government and public sector organizations.

Until recently, Reliance was permitted to provide only “limited mobility” services through its basic services license. However, it has now acquired a unified access license for 18 circles that permits it to provide the full range of mobile services. It has rolled out its CDMA mobile network and enrolled more than 6 million subscribers in one year to become the country’s largest mobile operator. It now wants to increase its market share and has recently launched pre-paid services. Having captured the voice market, it intends to attack the broadband market.

TATA TELESERVICES

Tata Teleservices is a part of the $12 billion Tata Group, which has 93 companies, over 200,000 employees and more than 2.3 million shareholders. Tata Teleservices provides basic (fixed line services), using CDMA technology in six circles: Maharashtra (including Mumbai), New Delhi, Andhra Pradesh, Tamil Nadu, Gujarat, and Karnataka. It has over 800,000 subscribers. It has now migrated to unified access licenses, by paying a Rs. 5.45 billion ($120 million) fee, which enables it to provide fully mobile services as well.

The company is also expanding its footprint, and has paid Rs. 4.17 billion ($90 million) to DoT for 11 new licenses under the IUC (interconnect usage charges) regime. The new licenses, coupled with the six circles in which it already operates, virtually gives the CDMA mobile operator a national footprint that is almost on par with BSNL and Reliance Infocomm. The company hopes to start off services in these 11 new circles by August 2004. These circles include Bihar, Haryana, Himachal Pradesh, Kerala, Kolkata, Orissa, Punjab, Rajasthan, Uttar Pradesh (East) & West and West Bengal.

VSNL

On April 1, 1986, the Videsh Sanchar Nigam Limited (VSNL) - a wholly Government owned corporation - was born as successor to OCS. The company operates a network of earth stations, switches, submarine cable systems, and value added service nodes to provide a range of basic and value added services and has a dedicated work force of about 2000 employees. VSNL's main gateway centers are located at Mumbai, New Delhi, Kolkata and Chennai. The international telecommunication circuits are derived via Intelsat and Inmarsat satellites and wide band submarine cable systems e.g. FLAG, SEA-ME-WE-2 and SEA-ME-WE-3.

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The company's ADRs are listed on the New York Stock Exchange and its shares are listed on major Stock Exchanges in India. The Indian Government owns approximately 26 per cent equity, M/s Panatone Finvest Limited as investing vehicle of Tata Group owns 45 per cent equity and the overseas holding (inclusive of FIIs, ADRs, Foreign Banks) is approximately 13 per cent and the rest is owned by Indian institutions and the public. The company provides international and Internet services as well as a host of value-added services. Its revenues have declined from Rs. 70.89 billion ($1.62 billion) in 2001-02 to Rs. 48.12 billion ($1.1 billion) in 2002-03, with voice revenues being the mainstay. To reverse the falling revenue trend, VSNL has also started offering domestic long distance services and is launching broadband services. For this, the company is investing in Tata Telservices and is likely to acquire Tata Broadband.

Vodafone

Vodafone’s presence in India dates back to late 1992, when they worked with local partners to establish a company licensed to provide mobile telecommunications services in Mumbai. Commercial operations began in November 1995. Between 2000 and March 2004, Hutch acquired further operator equity interests or operating licences. With the completion of the acquisition of BPL Mobile Cellular Limited in January 2006, it now provides mobile services in 16 of the 23 defined licence areas across the country.

Vodafone India has benefited from rapid and profitable growth in recent years. it had over 17.5 million customers by the end of June 2006.

IDEA

Indian regional operator IDEA Cellular Ltd. has a new ownership structure and grand designs to become a national player, but in doing so is likely to become a thorn in the side of Reliance Communications Ltd. IDEA operates in eight telecom “circles,” or regions, in Western India, and has received additional GSM licenses to expand its network into three circles in Eastern India -- the first phase of a major expansion plan that it intends to fund through an IPO, according to parent company Aditya Birla Group .

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COMPANY PROFILE

IDEA CELLULAR LIMITED

“The proud offspring of three illustrious parent (A.V Birla Group, TATA cellular and AT & T Wireless), Idea Cellular will be driven by the objective of creating a different in the lives of our customers. Idea Cellular aspires to offer the most comprehensive and innovative services, to assist people to go beyond what they thought possible. As the cellular revolution transforms India in the coming decade, Idea Cellular will be a harbinger of change.”

- Sanjeev Aga

(President and CEO Idea Cellular Limited)

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ABOUT THE COMPANY…

LAUNCH OF SERVICE:

The cellular service was launched in the Gujarat circle in January 1997 and in the Maharastra circle (excluding Mumbai, including Goa) in March 1997.

THE INITIAL PROMOTERS:

It was at the time of its launch set up as a joint venture of Aditya Birla Group and the leader in Wireless Technology-AT&T.

Established in 1947, the Aditya Birla Group is on of the leading business house in India. The Group has its presence across various sectors including cement, Viscose Staple fiber, engineering, textiles, power, telecommunication, industrial chemicals, petroleum and financial services. The business is spread across 15 countries with over 100 manufacturing units in India and overseas including Thailand, Indonesia, Malaysia, Philippines, Egypt and Canada. Trading operations span across Singapore, Dubai, UK, USA, South Africa, Tanzania, Burma and Russia. All the group’s units are accredited with the ISO 9002 certification and nine on them ISO 14001 certified.

AT&T is the largest telecommunication company in the world offering a complete range of communication services. AT&T started its operations in 1885 and is present in over 200 countries. In the United States – its parent country, AT&T Corp. is a leading – distance carrier, wireless operator and provider of video data and Internet services. In the recent past, AT&T Corp. acquired Media One, one of the largest cable companies in USA, while Media one had acquired US West, a US based telecom operator.

In India, US West is the joint venture partner of BPL for providing cellular services in the circles of Maharastra, Kerala and Tamilnadu. As a result of this consolidation, AT&T has direct interest in cellular services in Maharastra through Birla AT&T Communications Limited and an indirect Internet through Media one in BPL Cellular Limited.

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TECHNOLOGY PARTNERS:

Idea welcomes all businesses and individuals interested in partnering with it to enhance and strengthen the idea’s products and services portfolios.Some of the idea’s technology and content partners:Nokia, Ericsson, schlumberger sema, NDTV, indiatimes, rediff, C2W.

IDENTITY:

Idea Cellular's antecedents date back to 1995, when the Aditya Birla Group and AT&T (through Birla AT&T Communications – Maharastra & Gujarat circle) and the Tata Group (through Tata Cellular - Andhra Pradesh circle) set up cellular networks. Both the above company was amongst the first company to commercially start operation in circles other than metros and achieve financial closure in Indian Telecom industry.

In the year 2000, the historic path-breaking merger of Tata Cellular with Birla AT&T Communications and the subsequent acquisition of RPG Cellular - (Madhya Pradesh circle) in the year 2001 - helped take the company to aim even further and led to the formation of Birla Tata AT&T Limited.

In year 2001, company won fourth cellular license for Delhi metro circle and in year 2002 company introduced common brand “!DEA” and changed the name to IDEA Cellular Limited

Since then, there has been no looking back for IDEA Cellular. The company launches Delhi operations in year 2002 and added a record 100,000 subscriber within one month of launch.

In 2003, the company achieved the largest financial closure in Indian Telecom for its entire circle. In 2004, the company entered into definitive agreement to acquire Escotel Mobile Communications (existing operator in Haryana, Kerla and UP (W)) and Escorts Telecommunications (cellular licensee holder for UP (E), Himachal Pradesh and Rajasthan)

CORE BELIEF:"Attracting and nurturing talent has become the single most dominant force in business."Idea - the very name suggests innovation. Innovation, which comes from intelligence, talent, skills, involvement, hard work and continuous learning.

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The company continuously harnesses the power of wireless revolution to provide world-class products and services. It aims at responding to customer needs proactively by anticipating requirements and providing ready solutions. Idea Cellular draws inspiration from the loyalty of its subscribers to keep raising the bar, to shape the future, and to change and enrich the life of each and every member of its ever-growing family of subscribers.

THE MEDIA:

“Stay Connected” is a brand promise that looks at the key purpose of the mobile telephony. It converges with the tangible requirement of ‘network depth’ and at the same time, reflects the eternal human need for bonding, kinsman ship and relationship forming. This new brand campaign enables Idea to own the biggest category benefit of “keeping people connected”, through a simple, unique and a likable expression of connectivity. And it makes consumers aware that “no one connects better than Idea.”

Slated to run through 2004, the campaign utilizes all relevant mainline media to propagate the message to its audiences with 60-seconds commercial and its various edits, print campaign and its outdoor publicity. Apart from it various innovative media/events has been used to further strengthen the message.For example- at local level Idea has exploited the Indo-Pak series by screening the one-day matches in popular places under the theme of stay connected.

THE PRODUCTS:

The Post-paid Card: The regular card as it is more popularly known as. The AT&T postpaid card has been rechristened as the Idea Postpaid card.

The Pre-paid Card:The Idea Cellular Pre-paid card is called as “IDEA CHITCHAT”.“IDEA CHITCHAT”IDEA Chitchat is a ready to talk cellular services. It runs on the state-of-the-art Intelligent Network, comes with world class features like all handset compatibility, therefore helping you to control your expenses too. It lets you make and receive local, national and international calls instantly.

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MISSION STATEMENT: “Through continuous innovation Idea promises to liberate customers from the shackles of time and space”. (Innovate, Stimulate, Liberate….)

Products of Idea

Idea Postpaid Entry Pricing (W.E.F. 6th Nov 07) All the Bill Plans

Activation Novo ! 99 Easy 499 Edge 299 Edge 199 Easy 599 MY Club

Prepaid to Postpaid

200 Activation Cost

200 Activation Cost

200 Activation Cost

200 Activation Cost

200 Activation Cost

200 Activation Cost

100 Plan Enrolment Fees






Total:300 Total:300 Total:300 Total:300 Total:300 Total:300

Add-on Connection

200 Activation Cost

200 Activation Cost

200 Activation Cost

200 Activation Cost

200 Activation Cost

200 Activation Cost

Nil Plan Enrolment Fees






Total:200 Total:200 Total:200 Total:200 Total:200 Total:200

Benefits

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Benefits

Local 100min M2M Free

Credit on Usage of Rs.499 on Local and STD Call Usage

299 Minutes Idea to Idea Free

199 Minutes Idea to Idea Free

Credit on Usage of Rs.599 on Local and STD Usage

0.10 to My Club/My Gan Series Numbers,

Entry Level Cost

- Total - Rs. 99/-- MRP of Starter Pack - Rs. 99/-- Validity Period - 0 Days.- TalkTime - Rs. 0/-.

Any Processing ChargesRecharge Vouchers (RV) valuing -[Inclusive of SIM + Processing fee + 12.36% Service Tax in INR]

Monthly free call allowances NIL

Duration of plan Open till further notice

Information Just an SMS away

This interactive SMS based Self-service application enables the prepaid subscriber to know their product related information , recharge voucher related information , what is hottest or latest promo and what is my account information specific to subscriber related information, send sms "CARE" to 4444.

*SMS to 4444 toll free from Home network.

Any taxes, in addition to the above NIL

Local Charges (Rs.)

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Idea Prepaid Regular Plan

Fixed WLL Cellular

Local Idea to idea Nil Nil Re 1/-

Local GSM, Landline and WLL

Re 1/- per minute

Re 1/- per minute

Re 1/- per minute

STD

Anywhere in India 2.75 2.75 2.75

STD Pack @ Rs. 40/- Per Month

1.50 1.50 1.50

ISD Rates

US, Canada, Europe, (Fixed), Singapore & Hong Kong

6.40 6.40 6.40

Other countries 9.19 9.19 9.19

Cuba, Sao Tome & Principe, Guinea Bissau, Diego Garcia, Nauru,Solomon Islands, Vanuatu, Cook Islands, Tuvalu, Tokelau, Norfolk Island, Sakhalin

49.20 49.20 49.20

Additional value added services:

Night Talk Rs. 30/-

Outgoing (11pm to 8am)

Local Idea to Idea 0.09/ min Other Local Mobiles 0.50 and LL Rs. 1/- To Activate Send sms : "Night" to 4444.To Deactivation Send sms 'NONIGHT" to 4444.

Cell to Cell ( Local Mobiles) Rs. 30/-

Outgoing Rs 1 Per Minute to Local MobilesTo Activate Send sms : "CC" to 4444.

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To Deactivation Send sms 'NOCC" to 4444.

STD Pack @ Rs. 40/- Rs. 1.50/- For all STD calls.To Activate Send sms : "STD" to 4444.To Deactivation Send sms 'NOSTD" to 4444.

I2I Pack Rental - Rs. 25/- 0.30 Paise for Local Idea to Idea Calling.To Activate Send sms : "I2I" to 4444.To Deactivation Send sms 'NOI2I" to 4444.

Recharge Vouchers (RV) valuing -

[Inclusive of SIM + Processing fee + 12.36% service tax in INR+]

MRP Range Rs

Service Tax Rs.

Pro Fee Rs

Talktime Range Rs

Validity Days

Remarks

From To From To From To

10 10 1.10 1.10 2 6.90 6.90 0

34 34 3.74 3.74 30.26 0 0 0SMS Voucher: Free 150 local SMS to be consumed within 30 days

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50 50 5.50 5.50 5 39.50 39.50 0

55 55 6.05 6.05 48.95 0 0 0

Value Voucher with Tariff Benefit-Local I2I@30p, M2M@50p & LL@Re1. Tariff valid for 30 days

70 70 7.70 7.70 2.30 60 60 0

75 75 8.25 8.25 66.75 0 0 0Value Voucher with Tariff Benefit-STD [email protected]. Tariff valid for 30 days

88 88 9.68 9.68 78.32 0 0 0SMS Voucher: Free 1000 local SMS to be consumed within 30 days

100 100 11.00 11.00 10 79 79 0

120 120 13.20 13.20 106.80 0 0 0Value Voucher with Tariff Benefit-Local Calls @ Re.1/min. Tariff valid for 365 days

199 199 21.89 21.89 127 50 50 60

220 220 24.20 24.20 110 85.80 85.80 15

350 350 38.50 38.50 125 186.50 186.50 30

550 550 60.50 60.50 125 364.50 364.50 30

1100 1100121.00

121.00

150 829.00 829.00 75

2200 2200242.01

242.01

150 1807.99 1807.99 180

3300 3300363.01

363.01

0 2936.99 2936.99 365

24

Michael Porter’s “Five Forces” Model

He has identified five forces that determine the state of competitiveness in a market. The forces also influence the profitability of firms already in the industry. These five forces are summarized in the above diagram. (The fifth force is the degree of rivalry that currently exists among firms already in the industry.) Here are a few additional details about Porter’s model.

25

1. Barriers to Entry

Economies of scale mean larger firms can produce at lower cost per unit. This tends to lower the number of firms in the industry and reduce competition.

Proprietary product differences are the characteristics that make a product appeal to a large market segment. But only those characteristics that cannot be copied at low cost by competitors (“proprietary”) will be a barrier to entry.

Brand identity is the extent to which buyers take the brand name into account whenmaking purchase decisions.

Capital requirements are the total cost of acquiring the plant and equipment necessary to begin operating in the industry.

2. Bargaining Power of Suppliers

Differentiation of inputs means that different suppliers provide different inputcharacteristics for inputs that basically do the same job. The greater the degrees ofdifferentiation among suppliers the more bargaining power suppliers have.

Presence [and availability] of substitute inputs means the extent to which it is possible to switch to another supplier for an input (or a close substitute). The greater the number and closeness of substitute inputs the lower the bargaining power of suppliers.

Supplier concentration is the degree of competition among suppliers. Usually the more concentrated the industry, the fewer suppliers and the more control suppliers have over the prices they charge. Greater supplier concentration often means greater supplier bargaining power.

Cost relative to total purchases in the industry refers to the amount your firm spends on inputs from a particular supplier compared to the total revenue of all firms in the supplier’s industry. Lower expenditure usually implies more bargaining power for the supplier. The buyer’s bargaining power falls as spending

26

with a particular firm falls simply because the buyer’s business isn’t as important to the supplier.

3. Threat of Substitutes

Relative price performance of substitutes is the price of substitutes for your output compared to the price you are charging. If the price of substitutes is lower, the competitive threat increases as the price differential increases.

Switching costs refers to the cost to the buyer of switching from one seller to another. The greater the switching costs the lower the threat of substitutes because buyers have a stronger incentive to stick with a single supplier.

Buyer propensity to substitute is the extent to which buyers are willing to consider other suppliers.

4. Bargaining Power of Buyers

Buyer concentration versus firm concentration refers to the extent of concentration in the buyer’s industry compared to the extent of concentration in your industry. The more concentrated the buyer’s industry relative to your industry the greater the bargaining power of buyers.

Buyer volume is the number of units of your product the buyer purchases from allsources. The greater buyer volume compared to the quantity purchased from you, the greater the bargaining power of buyers.

Buyer information is the state of information buyers have about your industry. The more information buyers have about your industry the more bargaining power buyers have. Substitute products means the number and closeness of substitutes available for your product. The greater the number of available substitutes the more bargaining power buyers have.

Price of your product relative to total expenditures on all products. This is the fraction of total expenditure buyers spend on your products. The greater the fraction of total expenditure the greater the price elasticity of demand and the more bargaining power buyers have.

27

Product differences refers to the degree of differentiation between your product and other products in the market. The greater the differentiation of your product, the lower its price elasticity of demand and the less bargaining power buyers have.

Brand identity is the extent to which your brand name is recognized and sought out bybuyers. The stronger your brand identity the less bargaining power buyers have.

5. Rivalry Determinants [with other firms in the industry]

Industry growth is the speed at which the market is growing. Rapidly growing markets provide less incentive for firms to aggressively compete with each other.

Intermittent overcapacity is the amount demand fluctuates during a year (or over abusiness cycle) and the impact lower demand has on how efficiently the firm is able to use its plant and equipment. In some industries a decrease in demand leads to significant idle productive capacity, while other industries are not as susceptible to this factor. More intense rivalry is likely to be fostered in an industry in which firms face either large amounts of unused plant capacity or face frequent idle capacity.

Concentration and balance is the number of firms in the industry and their relative size. An industry in which a few firms supply most of the output is likely to not be very competitive because the large firms will control the market.

28

EMPIRICAL ANALYSIS

STATISTICAL METHOD USED FOR TESTING:

1. Availability of the cards with FOD:

Total Ahmedabad: The total no. of the retails is 100.

Availbility of cards and FOD

0

20

40

60

80

100

120

company

reta

ilers

Cards

FOD

29

Airtel Bsnl Vodafone Idea Reliance Tata

Cards 96 40 98 96 64 34

FOD 0 0 0 0 0 0

Conclusion:

From the above chart, we can conclude that the availability of the idea and

hutch is almost same and highest among all the competitors. In case of the

FOD, FOD is not sell by the retailer. Through there are few sellers of FOD but

we can not find a single one.

Suggestion:

From the above results we suggest to the company that they have to meet to the

retailer and convince them to sell the FOD cards. Because there is an

opportunity to garb the more market share.

2. Age of the retailer (Total experience):

Total Ahmedabad: The total no. of the retails are 100.

Less then 1 year 1 to 3 years 3 to 6 years 6 to 9 years More than 9 years

Age 41 51 7 1 0

30

Age

41%

51%

7%

1%

0% Less then 1 year

1 to 3 years

3 to 6 years

6 to 9 years

More than 9 years

Conclusion:

In general, from the above graphical representation, we can conclude that, the most

of the retails belonging the range of the 1 to 3 years of the experience. It shows that

the overall distribution reach and the mobile users in the city of Ahmedabad were

increased in last 3 years.

Suggestion:

We find that the most of the retailer belonging the range of 1 to 3 years of

experience. But company should approach to more experienced shopkeeper

because they are the known retailer of the particular area. And also they are at

there from many years so there are highly chances to sell more cards.

3. Target audience



Students 29 2 12 22 11 0

31

Students

0

510

15

20

2530

35

Company

Students

Conclusion:

From the above presentation, we can conclude that, in Ahmedabad the usage of

the maximum cards by students are of the Airtel. The idea is on the second

position in usage by students.

Suggestion:

Students are the maximum user of this service. But in today’s scenario there are

increases in working women so company can directly approach to locality

service women group. Yet not single companies do this so we have great

opportunity to sell more cards of our company.

4 Trade Scheme


32


Trade

Scheme 96 38 99 98 64 33

Total 97 40 99 99 64 33

Trade scheme

0

20

40

60

80

100

120

Company

Ret

aile

r

Trade Scheme

Total

Consumer Scheme


33

Airtel Bsnl Vodafone Idea

Relianc

e Tata

Consumer Scheme 96 38 99 99 64 34

Total 96 40 99 99 64 34

Consumer scheme

0

20

40

60

80

100

120

Company

Ret

aile

r

ConsumerScheme

Total

Conclusion:

From the above analysis, we can conclude that, in 98% cases, the all retailers

are aware about the consumer schemes and the trade schemes. The distributors

make them aware about the all the schemes available in the market.

Suggestion:

34

The company performs well in consumer scheme and trade scheme. So no

recommendation for consumer scheme and trade scheme.

5. Source of purchasing the cards:


35

From company’s sales person From other dealers

Airtel 0 97

Bsnl 0 40

Vodafone 0 100

Idea 0 100

Reliance 0 71

Tata 0 74

Source of purchasing

0

20

40

60

80

100

120

Company

Reta

iler From company’s

sales person

From other dealers

Conclusion:

From the above data, we can say that the all of the retailers purchase the

prepaid cards from the other dealers because their distribution service is good

and timely.

Suggestion:

We find that most of the retailers purchase cards form the other distributors. In

this case company should hire more employees who meet the retailers directly

and sell the cards. By this way they can reduced the middle persons.

6. Analysis of all companies with different attributes:

36

Here, the total value is calculated on the basis of the rank given to them according

to their performance. (6 to 1 rank. 6 for best and 1 for worst).

Network:

Total Ahmedabad: The total no. of the retailer 100.

Network

0

1

2

3

4

5

6


Average

Conclusion:

37

Airtel Bsnl Vodafone Idea

Relianc

e Tata

Total Value 81 39 92 71 51 26

Average 4.856 2.33 5.532 4.688 3.074 1.52

As far as network is consult, the Vodafone is number one. The research shows

that the network is very much stronger. The idea’s position is third and then

comes Reliance and Tata.

Suggestion:

Idea’s position is third in network. If idea wants to come forward in network it

has to increase its network capacity in some area.

Company Scheme:



Total Value 90 56 93 61 58 44

Average 5.006 3.685 5.658 4.492 3.47 3.152

38

Company scheme

0

1

2

3

4

5

6


Average

Conclusion:

As far as consumer’s scheme is consult, the Vodafone is number one. The

research shows that people are much satisfies with the Vodafone’s schemes.

The Airtel’s position is second and then comes Idea, BSNL And Reliance.

Suggestion:

We found that Idea is lacking in consumer schemes so company has to increase

its consumer schemes.

Trade Scheme:


Airtel Bsnl vodafone Idea Reliance Tata

Total Value 81 72 84 82 76 65

Average 4.586 4.156 4.962 4.759 4.267 4.043

39

Trade scheme

0

1

2

3

4

5

6


Average

Conclusion:

As far as Trading schemes are consulting, the Airtel and Idea has acquired the

same position almost. The research shows that retailers are much satisfies with

the Airtel and idea’s trading schemes. The idea’s position is second and then

comes Hutch And Reliance.

Suggestion:

The trading scheme of Idea is better then other companies. So company has to

keep this path.

Distribution Services:



Total Value 84 59 89 87 82 79

Average 4.946 3.573 5.142 5.027 4.894 4.684

40

Distribution service

0

1

2

3

4

5

6


Average

Conclusion:

As far as distributor’s services consult, the Idea has acquired the first position.

The research shows that retailers are much satisfies with the idea’s distributor’s

services. The Airtel’s position is second and then comes Hutch And Reliance.

Suggestions:

The distribution service of Idea is good so there is no suggestions for the

distributions services.

Call Center Services:



Total Value 95 89 96 94 93 91

Average 5.764 5.357 5.862 5.694 5.628 5.532

41

Call centre service

5.1

5.2

5.3

5.4

5.5

5.6

5.7

5.8

5.9


Average

Conclusion:

As far as call center services consult, the Hutch has acquired the first position. The

research shows that the hutch provides the better call center services then others.

The Airtel’s position is second and then comes Idea And Reliance.

Suggestion:

In companies call center service, Idea has to need of improve its call center service,

by acquiring new technology. So it can compete other existing competitor.

The whole comparative analysis of all companies.

42

Analysis of all companies

01234567


Analysis of no of cards selling by retailers in Ahmedabad

Area-1 (South-west region)

Area-2 (North-west region)

43

0/recharge 1 to 5 6 to 25 26 to 50 Above 50

Airtel 11 12 2 1 0

Bsnl 10 0 0 0 0

Vodafone 3 22 3 0 0

Idea 7 18 4 0 0

Reliance 10 6 3 0 0

Tata 5 4 0 0 0

02468

101214161820

0/recharge

1 to 5

6 to 25

26 to 50

Above 50

Area-3 (North-east region)

44


Airtel 9 12 1 0 0

Bsnl 8 0 0 0 0

Vodafone 2 18 3 1 0

Idea 8 12 1 0 0

Reliance 10 3 0 0 0

Tata 7 1 0 0 0


Airtel 2 16 4 0 0

Bsnl 9 0 0 0 0

Vodafone 2 17 3 1 0

Idea 2 16 5 0 0

Reliance 3 10 1 0 0

Tata 2 4 0 0 0

0

2

46

8

10

1214

16

18

0/recharge

1 to 5

6 to 25

26 to 50

Above 50

Area-4 (Middle-east region)

45


Airtel 0 17 6 0 0

Bsnl 12 0 0 0 0

Vodafone 1 19 4 0 0

Idea 1 17 6 0 0

Reliance 1 12 3 0 0

Tata 0 8 0 0 0

02468

101214161820

0/recharge

1 to 5

6 to 25

26 to 50

Above 50

Analysis of recharge value sold

46

Area-1 (South-west region)

Below 5000

5001 to

10000

10001 to

25000

25001 to

50000 Above 50000

Airtel 24 2 2 0 0

Bsnl 10 0 0 0 0

Vodafone 17 8 3 0 0

Idea 21 5 2 0 0

Reliance 15 4 0 0 0

Tata 9 1 0 0 0

0

5

10

15

20

25

30

Below 5000

5001 to 10000

10001 to 25000

25001 to 50000

Above 50000


47

Below

5000

5001 to

10000

10001 to

25000

25001 to

50000

Above

50000

Airtel 19 2 0 0 0

Bsnl 8 0 0 0 0

vodafon

e 12 10 2 0 0

Idea 17 5 1 0 0

Reliance 13 0 0 0 0

Tata 8 0 0 0 0

02468

101214161820

Below 5000

5001 to 10000

10001 to 25000

25001 to 50000

Above 50000


48

Below

5000

5001 to

10000

10001 to

25000

25001 to

50000

Above

50000

Airtel 17 2 3 0 0

Bsnl 9 0 0 0 0

Vodafone 17 3 2 0 0

Idea 10 3 4 0 0

Reliance 10 3 0 0 0

Tata 6 0 0 0 0

0

2

46

8

10

1214

16

18

Below 5000

5001 to 10000

10001 to 25000

25001 to 50000

Above 50000


49

Below

5000

5001 to

1000010001 to

25000

25001 to

50000

Above

50000

Airtel 16 2 5 0 0

Bsnl 12 0 0 0 0

Vodafon

e 17 3 3 0 0

Idea 16 4 3 0 0

Reliance 12 3 2 0 0

Tata 8 1 0 0 0

0

2

46

8

10

1214

16

18

Below 5000

5001 to 10000

10001 to 25000

25001 to 50000

Above 50000

9. Sales person visit (Efficiency of Salesman Of Distributor)

Area-1 (South-east region)

50

Once Twice

More than

twice

Not at all

visited

Airtel 2 8 18 0

Bsnl 1 4 0 5

Vodafon

e 1 10 18 0

Idea 2 9 18 0

Reliance 3 5 10 0

Tata 1 5 3 0

02468

101214161820

Airtel

Bsnl

Vodaf

one

Idea

Relianc

eTat

a

Once

Twice

More than twice

Not at all visited

51

Conclusion: From the above graphical representation, we can conclude that the

efficiency of sales person of Idea is highest, closely followed by Airtel and

Vodafone. So all three companies are much focus for their distributor efficiency.


Once Twice More than twice Not at all visited

Airtel 3 10 9 0

Bsnl 2 3 1 3

Vodafone 2 10 11 0

Idea 2 10 10 0

Reliance 3 5 6 0

Tata 2 6 1 0

0

2

4

6

8

10

12

Airtel

Bsnl

Vodaf

one

Idea

Relianc

eTat

a

Once

Twice

More than twice

Not at all visited


efficiency of sales person of Vodafone is highest, closely followed by Idea and

52

Airtel. The reliance is also come up with good strength for distribution after those

three. So all three companies are much focus for their distributor efficiency.

Area-3 (north-east region)

0

5

10

15

20

25

Airtel

Bsnl

Vodaf

one

Idea

Relianc

eTat

a

Once

Twice

More than twice

Not at all visited


efficiency of sales person of Airtel and Idea are almost same, closely followed by

53

Once Twice

More than

twice

Not at all

visited

Airtel 0 3 20 0

Bsnl 0 0 0 9

Vodafone 0 3 19 0

Idea 0 3 20 0

Reliance 0 2 12 0

Tata 0 4 2 0

Vodafone. The reliance is also come up with good strength for distribution after

those three. So all three companies are much focus for their distributor efficiency.


Once Twice

More than

twice

Not at all

visited

Airtel 0 1 22 0

Bsnl 1 0 0 12

Vodafone 0 1 23 0

Idea 0 1 23 0

Reliance 0 1 3 0

Tata 0 3 5 1

0

5

10

15

20

25

Airtel

Bsnl

Vodaf

one

Idea

Relianc

eTat

a

Once

Twice

More than twice

Not at all visited

54

Conclusion: From the above graphical representation, we can conclude that the efficiency of sales person of Airtel and Idea are almost same, closely followed by Vodafone. But with comparison of other three region the performance of all representative is somewhat low. So all three companies are much focus for their distributor efficiency.

10. Manager’s visit (Efficiency of executives & Managers)

Area-1(South-west region)

0

5

10

15

20

25

Airtel

Bsnl

Vodaf

one

Idea

Relianc

eTat

a

Once

Twice

More than twice

Not at all visited

55


Airtel 7 0 0 21

Bsnl 0 0 0 10

Vodafone 8 0 0 20

Idea 9 0 0 20

Reliance 7 0 0 12

Tata 1 0 0 8


efficiency of Executives & managers of Vodafone and Idea are almost same,

closely followed by Airtel. So all three companies are much focus for their

distributor efficiency.

Area-2(North-west region)


Airtel 7 0 1 15

Bsnl 0 0 0 8

Vodafone 8 0 1 15

Idea 9 0 1 14

Reliance 4 0 0 9

Tata 1 0 0 7


efficiency of Executives & managers of Vodafone is highest, closely followed by

56

0

2

4

6

8

10

12

14

16

Airtel

Bsnl

Vodaf

one

Idea

Relianc

eTat

a

Once

Twice

More than twice

Not at all visited

Idea and Airtel. But with comparison of other regions the performance of all

representatives is somewhat low.


02468

101214161820

Airtel

Bsnl

Vodaf

one

Idea

Relianc

eTat

a

Once

Twice

More than twice

Not at all visited


efficiency of Executives & managers of Idea and Airtel are almost same. Vodafone

57


Airtel 9 0 0 13

Bsnl 0 0 0 9

Vodafone 4 0 0 19

Idea 9 0 1 14

Reliance 7 0 0 6

Tata 1 0 0 5

is leader in this area. But with comparison of other regions the performance of all


Area-4(Middle-east region)

02468

101214161820

Airtel

Bsnl

Vodaf

one

Idea

Relianc

eTat

a

Once

Twice

More than twice

Not at all visited


efficiency of Executives & managers of Idea is higher, closely followed by Hutch

58


Airtel 9 0 0 14

Bsnl 0 0 0 12

Vodafone 4 0 0 19

Idea 10 0 0 14

Reliance 10 0 0 8

Tata 2 0 0 7

and Airtel. But with comparison of other regions the performance of all


FINDINGS

From the above data and the analysis we have made the final conclusion is as

under:

Our main objectives of the project are:

To assess market share of the Idea vis-à-vis other competitor.

To analyze effectiveness of idea’s representative vis-à-vis other competitor.

To study and analyze the reach of Idea’s distribution network vis-à-vis other

competitor.

To assess the distribution depth of Idea vis-à-vis other competitor.

59

Conclusion:

Idea is the major competitor in the Ahmedabad and has a leading position in

many areas like distribution reach and efficiency of distributor.

As far as the reach of Idea’s distribution network is consult the idea has a

leading position. For distribution of the cards, the services and the reach are

good enough. There is some problem with some far areas but overall

performance is focused.

As far as the efficiency is consult the idea has a moderate position. For

distribution of the cards and the efficiency of the executives and the

managers are good enough. The work is focused.

RECOMMENDATIONS

As far as network is consult, the performance of the Idea is weak, as

compared to the Vodafone and Airtel and Reliance. So, Try to improve on

such factor via increasing a technical support.

Same problem is with call center, as far as customer care services are

consulted, the performance is not up to the mark again. Compare to the Idea,

Vodafone and Airtel has comparatively good performance. So, idea has to

work upon it and try to make it more efficient with training programs.

60

The problem existed with the Middle East and some areas of Southwest

region. The retailers are quite dissatisfied with the distributor services. So,

particularly for those areas the frequency of visits and the quality of

meetings of sales persons should be increased.

The performance of Idea is good, in particularly western part of the city, but

still in other areas like eastern part, the need of the more awareness campain

is required.

Make a good relationship with retailers. Need to show and maintain great

company’s support. Which makes retailers themselves sell and promote

companys’cards. And the same helps to create better public image.

The impact of Idea chitchat on customers is not powerful compared to

Vodafone so, try it to be strong by more promotions from the ways that has

powerful impact on public’s mind like Radio Mirchi, local cable and

newspapers.

Organizing of retail events (Retail Meet) that are opening a new Retail club.

To expand the market the company should not only concentrate over the

urban areas, but also have look at the uncaptured rural market. And establish

good offers considering the villagers’ requirements.

61

Try to get the trust of customer by providing better services and attractive

schemes. Every customer wants satisfaction from the product so give him or

her as much convenience as possible to make him or her permanent

customer.

The retailer whosoever are of the more recharge voucher purchasers, should

offered the extra benefits other than the regular one.

The problem is with the Network and the call center services. Idea should

work upon the same and try to make it efficient with more technical support

and training programs.

APPENDICES

_______________________________________________________________

Dear Sir/Madam,

Kindly extend your cooperation in filling this questionnaire and

enable us to conduct the research successfully.

Date: _________

Retail Name: ________________________

Road: ______________________________

62

Address: ________________________________________________

Pin Code: _______________

Type of the shop:

1) Telecom shop

2) General / Provision store

3) Grocery shop

4) Pan shop

5) S.T.D. booth

6) Gift shop

7) Stationary shop

8) Others, please specify ________

______________________________________________________________

1. Which companies pre-paid cards, are you selling?

2. Since how many years, you are in the business of selling pre-paid cards in the

market?a) Less than 1 year

63

Company Cards FOD

(a) Airtel

(b) Bsnl

(c) Vodafone

(d) Idea

(e) Reliance

(f) Tata

b) 1 to 3 years

c) 3 to 6 years

d) 6 to 9 years

e) More then 9 years

3. How many pre-paid cards of different companies you sell in a month?

0/Recharge 1 to 5 6 to 25 26 to 50 Above 50(a) Airtel(b) Bsnl(c) Vodafone(d) Idea(e) Reliance(f) Tata

4. What is the recharge value sold at your outlet per month (in rupees)?

5.

From whom you purchase the pre-paid cards of different companies?

64

Below 5000

5001 to 10000

10001 to 25000

25001 to 50000

Above 50000

(a) Airtel(b) Bsnl(c) Vodafone(d) Idea(e) Reliance(f) Tata

From company’s sales-person From other dealers(a) Airtel(b) Bsnl(c) Vodafone(d) Idea(e) Reliance(f) Tata

A) If from other dealers, than what is the reason?

6.

How frequently the salesman of distributor visits your shop in a week?

7. How frequently the company’s sales executives/manager visits your shop in a month?

8. Are you getting clearly and timely information from company’s sales representative about different schemes launched?

65

Discount Credit Distributor’s services(a) Idea(b) Vodafone(c) Airtel(d) Bsnl(e) Reliance(f) Tata

Once Twice More than twice Not at all visited(a) Airtel(b) Bsnl(c) Vodafone(d) Idea(e) Reliance(f) Tata

Once Twice More than twice Not at all visited(a) Airtel(b) Bsnl(c) Vodafone(d) Idea(e) Reliance(f) Tata

9. Give the rank to the different companies, according to their performance in the different area. (Use 6 to 1 rank. 6 for best and 1 for worst). You cannot repeat ranks given once.

10.Who are the main buyers of the different company’s pre-paid cards?

66

Trade Scheme Yes No(a) Airtel(b) Bsnl(c) Vodafone(d) Idea(e) Reliance(f) Tata

Consumer Scheme

Yes No

(a) Airtel(b) Bsnl(c)Vodafone(d) Idea(e) Reliance(f) Tata

Airtel Bsnl Vodafone Idea Reliance TataNetworkCompany schemesTrade schemesDistributor servicesCall center services

11.Please give your satisfaction level towards these companies.

Thank you

REFERENCE

Books:

Marketing Management (Eleventh Edition) by Philip Kotler published by Pearson Education .

Business Research Methods (Eighth Edition) by Donald R. Cooper and Pamela S. Schindler published by Tata McGraw-Hill. Articles:

1) IDEA Haryana crosses base of half a million subscribers, 9 Sep 2006 ,

67

Students Others(a) Airtel(b) Bsnl(c) Vodafone(d) Idea(e) Reliance(f) Tata

Satisfied Unsatisfied Reason(a) Airtel(b) Bsnl(c) Vodafone(d) Idea(e) Reliance(f) Tata

http://www.prdomain.com/companies/I/IdeaCellular/newsreleases/200691041913.htm

2) Aggressive growth strategy dents Idea's bottom line, The Economic Times, 22 Oct 2008,

http://economictimes.indiatimes.com/News/News_By_Industry/Telecom/Aggressive_growth_strategy_dents_Ideas_bottomline/articleshow/3625655.cms

3) Designing the distribution network in a Supply Chain, Sunil Choprahttp://72.14.235.132/search?q=cache:QPJN7SARvt4J:www.kellogg.northwestern.edu/faculty/chopra/htm/research/deliverynetwork.pdf+distribution+network+of+idea&hl=en&ct=clnk&cd=2&gl=in

4) Idea Cellular now in Bihar & Jharkhand 30th September, 2008http://72.14.235.132/search?q=cache:lmhIOwrG1sEJ:www.ideacellular.com/ShowBinary/BEA%2520Repository/idea/MajorEvents/Bihar_Jharkhand.pdf+distribution+network+of+idea&hl=en&ct=clnk&cd=11&gl=in

Websites:

1) www.wikipedia.com

2) www.ideacellular.com

3) www.businssline.com/index.cellular.asp

4) www.gov.in/telecomunication/grwoth.asp

5) www.trai.com

GLOSSARYCaller Line Identification Presentation (CLIP)

CLIP identifies the caller by displaying the number of the caller on the handset.

Call Conference (CC)

This feature allows you to have a teleconference with up to five people at the same time, from wherever you are.

Caller Line Identification Restriction (CLIR)

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http://www.trai.com/

http://www.wikipedia.com/

http://72.14.235.132/search?q=cache:lmhIOwrG1sEJ:www.ideacellular.com/ShowBinary/BEA%2520Repository/idea/MajorEvents/Bihar_Jharkhand.pdf+distribution+network+of+idea&hl=en&ct=clnk&cd=11&gl=in



http://72.14.235.132/search?q=cache:QPJN7SARvt4J:www.kellogg.northwestern.edu/faculty/chopra/htm/research/deliverynetwork.pdf+distribution+network+of+idea&hl=en&ct=clnk&cd=2&gl=in





http://www.prdomain.com/companies/I/IdeaCellular/newsreleases/200691041913.htm

Now, with CLIR you can restrict your cellular phone number from being displayed on the receiver's cellular phone.

Short Messaging Service

This feature allows you to send and receive messages, to and from, respectively; almost all national and international cellular operators.

Itemized Billing

An itemized bill gives you the details of all calls made and received, and of all the other facilities you availed of, on your mobile number during a month.

Call Divert (CD)

With Call Divert, you can divert an incoming call to another cell phone except BSNL Cellular phones and Landlines Phones.

FOD

The advertising tools, which make show off the product. (Like wise, the stickers,

shelf, artificial model etc,) The glosign boards of the different company are not

included in the FOD.

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Telecom Sector in Gujarat

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