Tata Communication Project Report

SUMMER TRAINING REPORT SUBMITTED TOWARDS THE PARTIAL FULFILLMENT OF POST GRADUATE DEGREE IN INTERNATIONAL

BUSINESS

Business Partner Profiling for TCL SMB Business in Mumbai

SUBMITTED BY:Vishal Vijay ChavanMBA-3C (2010-2012)

Roll No. : A1808710018

INDUSTRY GUIDE FACULTY GUIDEVikas Mathur Ms Astha GuptaChannel Devlopment ManagerSMB DepartmentTata Communications, Mumbai

AMITY INTERNATIONAL BUSINESS SCHOOL, NOIDA

AMITY UNIVERSITY – UTTAR PRADESH

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TO WHOM IT MAY CONCERN

This is to certify that Vishal Chavan, a student of Amity International Business School, Noida, undertook a project on “Business Partner Profiling for TCL SMB” at Tata Communications Ltd Mumbai from 9th May 2011to 8th

July 2011.

Mr. Vishal Vijay Chavan has successfully completed the project under the guidance of Mr. Vikas Mathur. He is a sincere and hard-working student with pleasant manners.

We wish all success in her/him future endeavours.

Signature with dateVikas MathurChannel Development ManagerTata Communications Ltd

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CERTIFICATE OF ORIGIN

This is to certify that Mr. Vishal Vijay Chavan, a student of Post Graduate Degree in 3continent MBA, Amity International Business School, Noida has worked in the Tata Communication Limited, under the guidance and supervision of Mr. Vikas Mathur channel development manager of Tata Communication Ltd. The period for which he was on training was for 9 weeks, starting from 9 th May 2011to 8 th July 2011. This Summer Internship report has the requisite standard for the partial fulfillment the Post Graduate Degree in International Business. To the best of our knowledge no part of this report has been reproduced from any other report and the contents are based on original research.

Signature Signature(Faculty Guide) (Student)

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ACKNOWLEDGEMENT

I express my sincere gratitude to my industry guide Mr. Vikas Mathur channel development manager of Tata Communication Ltd, for his able guidance, continuous support and cooperation throughout my project, without which the present work would not have been possible.

I would also like to thank the entire team of Tata Comunication Ltd, for the constant support and help in the successful completion of my project.

Also, I am thankful to my faculty guide Prof./Mr./Ms. of my institute, for his/her continued guidance and invaluable encouragement.

Signature(Student)

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TABLE OF CONTENTS

1. EXECUTIVE SUMMERY 6

2. RESEARCH METHODOLOGY 8

3. PRIMARY OBJECTIVES 8

4. SECONDARY OBJECTIVES 8

5. SCOPE OF THE STUDY 8

6. LIMITATIONS 10

7. TATA COMMUNICATION PROFILE 12

8. HISTORY OF TATA COMMUNICATIONS 14

9. SWOT ANALYSIS 23

10. INDIAN TELECOM SECTOR: AN OVERVIEW 24

11. MAJOR PLAYERS 33

12. SWOT ANALYSIS OF INDUSTRY 41

13. DATA 42

14. PRIMARY DATA 42

15. SECONDARY DATA 46

16. FINDINGS & ANALYSIS 47

17. RECOMMENDATIONS 47

18. BIBLIOGRAPHY 48

19. CASE STUDY 49

20. SYNOPSYS

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Executive Summery

Tata Communications Ltd is one of the biggest company in the telecom sector worth USD 13

billion and one of the youngest company in India formed in 2008 by acquiring VSNL. This study

has helped to understand the market, product offered, channel partners and the customers and the

compititors in the communication sectors. As the name Tata communication we fill that it is the

tata indicom the teleservice provider or the tata photon the broadband service provider to end

consumers. Tata communication is not the teleservice provider or the broad band service

provider as the Tata Indicom or the Tata Photon it is the advance version of all, much bigger than

the both of them it is the indirect competitor of them. During the program it was impoetant to

understand that which channel partner is capable of handling the brand very well and who can

raise the business. It is to study in which services and the product the channel partner deal in to

also to learn how to get the information about the particular things how to convince the person to

talk to you and have the valuable information you required from him.

It helped to understand what is expected by us and to perform according to it. The Tata

communication is expecting a channel partners who has very high customer profile and has good

reputation in the market. Company is newly formed in 2008 so whenever we are approaching to

the channel partners for the collecting the information about their organization they use to

confuse with TTML and the TCL then we have to elaborate them about the company profile and

the different product offered by the organization. TTML is the Tata Telecom Maharashtra Ltd.

and the TCL is Tata communication Ltd. they are the part of Tata but they are the indirect

competitor of each other. then the other detail like the product offered, insta office, insta

compute, cloud computing, CDN, collocation, Data center management, PRI etc. there was so

much to learn like first time management, not being from the engineering back ground have to

learn the all engineering terms in minimum time and on the other hand have to collect the names

and addresses for profiling the channel partners. First step of profiling was just segment the

channel partners according to their location they were located. It helped to understand the

geographical location of Mumbai as well as the market distribution of the channel partners and

the EPBX and the broadband dealers throughout Mumbai. it was giving the brief knowledge and

helping to understand what actually is needed and what we are doing, it was not to satisfy the

industry guide but to give the output for the best result. In the second step we have to visit the

channel partners who are existing channel partners, who are prospective channel partners and

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rest channel partners. We have to take an appointment and get the detailed information

mentioned. The financial turnover of the company, what are the products he deal into, for which

company he is channel partner. Whether is he interested into for working as channel partners

with tata and if yes then in which products he is interested and what Activities that you currently

undertake for your current set of products & services you deal. What is the total number of

workers they have what is the proportion they have for the sales team and the technical team.

How do they train their technical and sales staff.

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RESEARCH METHODOLOGY

The research so conducted was done in order to determine the profiling (segmentation) of Tata

Communications in comparison to Bharti Airtel & Relience Communications and others. who

are the leading brands and organizations in the communitions segment in the industry till date. In

order to conduct this research the primary data has to be collected with the help of the

questionnaire which would then determine the fate of the research along with the secondary data

abstracted from the organization’s database which would help out in determining the sales

volume and the availability if the product in the market and its demand. The research was

pertained to the market of Mumbai where the headquarters of the company. The research

constituted the analysis of channel prtners, study of brand packs of all there organizations in the

segment as well as the merchandising of the products of Tata Communications were to be

studied. Methodology to be adopted:-

1) Visiting existing channel partners of Tata communications and non existing channel partners.

2) Taking help from the secondary data in order to study the distribution channel & channel

partner’s profile of Tata communications

3) Visit the market to collect the primary data for the research on the channel partner and their

availability in the market.

PRIMARY OBJECTIVES:-

1) To understand the distribution channel system at Tata Communications Ltd.

2) To study all product provided by Tata Communications Ltd.

3) To study the profile of the channel partners and submit to managers.

SECONDARY OBJECTIVES:-

1. To have a know-how about the Telecom industry.

2. To gain expertise in the Telecom industry.

3. To understand the distribution system and channel in a communication industry viz.

Beverages.

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4. To provide the company with the relevant information regarding the response to their

product by the channel partners.

5. Providing data to the company regarding the research and survey on their product.

RESEARCH DESIGN:-

Once the problem is identified, the next step is to prepare a plan for getting the information

needed for the research. The present study will adopt Descriptive approach wherein we are to

study the characteristics of channel partners for Tata communications i.e. whether the channel

partner is interested o have partnership with Tata Communications and whether he is capable of

handling the Tata brand.

The project is based on the analysis of channel partners in Market who are non register and

register with Tata. Descriptive analysis states that the sampling technique used would be

probabilistic in its approach, pre-planned, structured or well thought and it maximizes reliability

so that are shouldn’t be any bias, so was designed in this project research. The method used in

the research project was questionnaire which is a primary data for the research work. The scaling

technique used in the research project was both quantitative as well as qualitative analysis type.

The primary data obtained was from the respondents with the help of the questionnaire and the

secondary data was abstracted from the organization which helped out in profiling the channel

partners for Tata Communication. Secondary data constituted of the various product and the

customers of the Tata communications Ltd.

SAMPLE DESIGN:-

Sampling method used in this research project was equal probability sampling wherein all the ch

had equal probability or chance of being selected and also it gives each item in the population

equal channel partners chance of being included in the sample. The population was a finite

population and the sample was being taken from the region of Mumbai and Navi Mumbai. The

sample design is a true representative of the population. The second method used to draw a

sample was systematic sampling which followed the equal probability sampling, the steps

involved in systematic sampling are as follows :-

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a) Randomly select any channel partner from a group of number i.e. select randomly a

channel partner in a particular location of Mumbai.

b) Then get the information about various product he deal into and ask him whether he is

interested to be register partner with Tata communications. Get his financial turnover etc.

Sample Size

A survey of 50 EPABX dealers (channel parters) was conducted using a questionnaire.

Time Period

The period of time for which the research was to be conducted was two months. The scaling

technique is both quantitative as well as qualitative type.

SCOPE OF THE STUDY:-

This research was undertaken in order to gage knowledge in the working of Communication

sector as I had a particular interest in the Telecom industry. This project will help the company in

profiling the channel partners who are register and who are not register with Tata

Communications Ltd and to have them a new channel partners for the company. So they can

understand what amount of business is generating from which channel partners. It is to study in

which services and the product the channel partner deal in to also to learn how to get the

information about the particular things how to convince the person to talk to you and have the

valuable information you required from him. It helped to understand what is expected by us and

to perform according to it. The Tata communication is expecting a channel partners who has very

high customer profile and has good reputation in the market.

LIMITATIONS:-Despite the possible efforts in conducting the research, there were some unavoidable situations,

which limited the scope of the project.

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Considering the population, the sample taken for present study seems fake (means some

of the address chosen for the collection of the data were fake ) and hence further new

channel partner has to be found out.

Some of the channel partners were non-cooperative in giving information.

Time available for research was very short so certain aspects have been overlooked.

Dealers were hesitant to provide the complete information due to fear of misuse of

information.

Respondents may sometimes misinterpret the questions, leading to a different answer.

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Tata Communication

About Tata Communications

Tata Communications is a leading global provider of a new world of communications. With a

leadership position in emerging markets, Tata Communications leverages its advanced solutions

capabilities and domain expertise across its global and pan-India network to deliver managed

solutions to multi-national enterprises, service providers and Indian consumers.

The Tata Global Network includes one of the most advanced and largest submarine cable

networks, a Tier-1 IP network, with connectivity to more than 200 countries across 400 PoPs,

and nearly 1 million square feet of data center and colocation space worldwide.

Tata Communications' depth and breadth of reach in emerging markets includes leadership in

Indian enterprise data services, leadership in global international voice, and strategic investments

in operators in South Africa (Neotel), Sri Lanka (Tata Communications Lanka Limited), and

Nepal (United Telecom Limited).

Tata Communications Limited is listed on the Bombay Stock Exchange and the National Stock

Exchange of India and its ADRs are listed on the New York Stock Exchange.

Tata Communications Limited (formerly VSNL), is a leading global provider of long distance

communications. The Tata Global network includes one of the most advanced and largest

submarine cable networks, a Tier-1 IP network, with connectivity to more than 200 countries

across 400 PoPs and nearly 1,000,000 square feet (93,000 m2) of data center and colocation

space worldwide. It is India's largest provider in data center services and also operates India's

largest data center in Pune. Tata Communications acquired Teleglobe, a company based in

Canada, and Dishnet, an Indian company, and is the largest shareholder in South African

operator Neotel. Tata Communications currently has a cable network of more than 232,000

kilometers.

Tata Companies Profile

Tata is a rapidly growing business group based in India with significant international operations.

Revenues in 2007-08 are estimated at $67.4 billion USD , of which 61 per cent is from business

outside India. The Group employs around 350,000 people worldwide. The Tata name has been

respected in India for 140 years for its adherence to strong values and business ethics.

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The business operations of the Tata Companies currently encompass seven business sectors:

communications and information technology, engineering, materials, services, energy, consumer

products and chemicals. The Group's 27 publicly listed enterprises have a combined market

capitalisation of some $60 billion, among the highest among Indian business houses, and a

shareholder base of 3.2 million. The major companies in the Group include Tata Steel, Tata

Motors, Tata Consultancy Services (TCS), Tata Power, Tata Chemicals, Tata Tea, Indian Hotels

and Tata Communications.

The Group's major companies are beginning to be counted globally. Tata Steel became the sixth

largest steel maker in the world after it acquired Corus. Tata Motors is among the top five

commercial vehicle manufacturers in the world and has recently acquired Jaguar and Land

Rover. TCS is a leading global software company, with delivery centres in the US, UK,

Hungary, Brazil, Uruguay and China, besides India. Tata Tea is the second largest branded tea

company in the world, through its UK-based subsidiary Tetley. Tata Chemicals is the world's

second largest manufacturer of soda ash. Tata Communications is one of the world's largest

wholesale voice carriers.

In tandem with the increasing international footprint of its companies, the Group is also gaining

international recognition. Brand Finance, a UK-based consultancy firm, recently valued the Tata

brand at $11.4 billion and ranked it 57th amongst the Top 100 brands in the world. Businessweek

ranked the Group sixth amongst the "World's Most Innovative Companies" and the Reputation

Institute, USA, recently rated it as the "World's Sixth Most Reputed Firm."

Founded by Jamsetji Tata in 1868, the Tata Companies' early years were inspired by the spirit of

nationalism. The Group pioneered several industries of national importance in India: steel,

power, hospitality and airlines. In more recent times, the Tata Companies' pioneering spirit has

been showcased by companies like Tata Consultancy Services, India's first software company,

which pioneered the international delivery model, and Tata Motors, which made India's first

indigenously developed car, the Indica, in 1998 and recently unveiled the world's lowest-cost car,

the Tata Nano, for commercial launch by end of 2008.

The Tata Companies has always believed in returning wealth to the society it serves. Two-thirds

of the equity of Tata Sons, the Tata Companies' promoter company, is held by philanthropic

trusts which have created national institutions in science and technology, medical research, social

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studies and the performing arts. The trusts also provide aid and assistance to NGOs in the areas

of education, healthcare and livelihoods. Tata companies also extend social welfare activities to

communities around their industrial units. The combined development-related expenditure of the

Trusts and the companies amounts to around 4 per cent of the Group's net profits.

Going forward, the Group is focusing on new technologies and innovation to drive its business in

India and internationally. The Nano car is one example, as is the Eka supercomputer (developed

by another Tata company), which in 2008 is ranked the world's fourth fastest. The Group aims to

build a series of world class, world scale businesses in select sectors. Anchored in India and

wedded to its traditional values and strong ethics, the Group is building a multinational business

which will achieve growth through excellence and innovation, while balancing the interests of its

shareholders, its employees and wider society.

History of Tata Communications

1986

-Videsh Sanchar Nigam was incorporated on 19th March with the object of assuming

responsibilities for providing international telecommunication services, which were being

provided by the erstwhile OCS, Department of Telecommunications, and Ministry of

Communications.

- The main business of the Company is to provide basic international switched

telecommunication services - comprising telephone, telex and telegraph services.

- VSNL is now concentrating on telecom related services

1992

- The Company offers Intelsat Business Service - a dedicated satellite-based service that

provides high speed, high quality data circuits on a point-to-point basis through earth stations

strategically located near the customer's premises.

- The Company has entered the era of mobile communications by commissioning its own Land

Earth Station (LES) at Arvi near Pune.

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1993

- The Company introduced Inmarsat-C service, which permits transmission of messages via

small portable terminals.

- The Company introduced a video conferencing service (both domestic and international)

through studios located at the Company’s international gateways at Mumbai, New Delhi,

Calcutta and Chennai.

1994

- The Company launched the Concert Packet Service (CPS) for Indian customers on 7 June, in

co-operation with British Telecom, UK.

1995

- In November, the Company introduced Inmarsat-B services for voice and data transmissions

and Inmarsat-M services for voice transmissions, both in digital format.

- The Company commenced providing Internet access services in August, and is the largest

commercial provider of access to the Internet in Mumbai, Chennai, New Delhi, Calcutta,

Bangalore and Pune and also a dominant commercial provider of access to the Internet in India,

with DoT providing access where the Company is unable to do so.

- The Company is one of the founding investors in ICO Global

Communications (Holdings) Limited which was formed by a consortium of international

telecommunications companies, governments and satellite and telephone equipment

manufacturers to establish and operate a satellite-based mobile telecommunication system.

1996

- VSNL have accorded approval to set up a subsidiary company to provide value added services

in India, with a share capital of upto Rs 80 crores.

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- The Company is the exclusive provider of public international telecommunication services in

India, linking the domestic Indian telecommunications network to 236 territories worldwide.

1997

- The Company introduced managed data network services in January and now offers such

services through the global alliance networks of six global partners-BT, Cable & Wireless,

EQUANT, Global One, IBM Global Services and Tele Media International.

- In February, the Company and DoT agreed to the current revenue sharing arrangement, which

took effect on 1st April, and will remain effective until 31st March 2002.

- The Company has made an offering of 30000000 Global Depository Receipts (GDRs)

representing 15000000 No. of Equity Shares at an offer price of US .93 per GDR in March/April.

- Videsh Sanchar Nigam Ltd, the country's only Internet service provider, has suspended new

dial-up connections.

- Videsh Sanchar Nigam (VSNL, India's international telecom carrier) has obtained a AAA

rating from Credit Rating & Information Services of India (Crisil) for a Rs.100 crore bond issue.

This is the first time the VSNL has gone in for a credit rating.

- The company signed a five year revenue sharing agreement with the DoT assuring VSNL and

stead per minute revenue from international basic telephony traffic despite fall in accounting rate

and restructuring the License fee arrangement.

1998

- Videsh Sanchar Nigam Ltd (VSNL), the country's international telecom monopoly, has

decided to amend its memorandum of association to include domestic long distance telephony as

part of its service offerings.

- VSNL has qualified for being rated Excellent amongst MOU-signing Public Sector

Undertakings with GoI for the year based on achievements against targets set out in the MoU for

that year.

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- Videsh Sanchar Nigam Limited has awarded a contract to Siemens Public Communication

Networks Limited for setting up a nationwide state-of-the-art data network, using digital cross-

connect.

- Videsh Sanchar Nigam Ltd (VSNL) introduced a new Internet dial-up service through high

speed ISDN (integrated services digital network) lines in Bangalore.

- Videsh Sanchar Nigam Ltd (VSNL) has introduced a flexihour accounts scheme for Internet

users, allowing its customers to upgrade form one slab to another.

1999

- The Videsh Sanchar Nigam (VSNL) has conducted a Vision 2004 study.

- The Company provides Home Country Direct services, which permit a caller to speak to an

operator in his home country directly and place a collect or charge call.

- The Company provides an international E-mail service - GEMS 400, which permits

subscribers to send E-mail both to other subscribers within India and to 242 public E-mail

systems in 75 countries.

- International telecommunications provider Videsh Sanchar Nigam Limited (VSNL) will enter

the national long distance telephony segment when it is opened up for competition in 2000.

- VSNL, which is the second largest shareholder in ICO Global, a consortium of telecom

operators, entered into a pre-launch agreement with ICO Global on Monday to pave the way for

the setting up of a joint venture company.

- Videsh Sanchar Nigam Ltd (VSNL) has set up an internal committee to look into its proposed

entry into domestic long-distance telephony (DLT).

- Videsh Sanchar Nigam Ltd (VSNL) has tied up with ICICI Bank to provide the latter's Net-

banking clients on-line registration and payment facility for taking Net connections.

- Videsh Sanchar Nigam Ltd (VSNL) and Hughes Escorts Communication Ltd

signed an agreement that would enable Hughes Escorts Communications to use the VSNL's

Internet infrastructure.

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2000

- The company has also launched an e-mail service exclusively for the media called

mediapoint.enmail.com. this is to bring media professionals on one virtual platform, to hear their

views and help the common man to give single point access to the media.

- Videsh Sanchar Nigam Ltd (VSNL) is planning to set up an Internet consultancy division,

which will offer technical consultancy to start-up Internet Service Providers (ISPs).

- Videsh Sanchar Nigam Ltd (VSNL) and Haryana Electronics Development Corporation Ltd

(HARTRON) signed a memorandum of understanding (MoU) to set up a high speed data

communication facility with associated marketing services for data links, internet access and

other value added services of VSNL.

- The Company will acquire an additional internet bandwidth in the current fiscal, bringing its

total to 750 megabites from the present 315 megabites.

- The Department of Telecommunications has asked Videsh Sanchar Nigam Ltd to set up an

exclusive website showing requirement and status of applications from private players for

bandwidth.

- Videsh Sanchar Nigam Ltd's., `monsoon package' introduced from June, for a period of two

months has resulted in a spurt in internet connections in Calcutta.

- The Company has signed a memorandum of understanding with Yahoo! India to host the

latter's servers at its facilities in Mumbai.

- The Company has recommended a 1:1 bonus to its shareholders and proposed increasing the

authorised share capital to Rs 250 crore from the existing Rs 100 crore.

- The Company has become the first Indian Public Sector undertaking to list on the New York

Stock Exchange as it began trading its American depository receipts under the ticker symbol

VSL.

- The Company revised the ratio of bonus shares to 2:1 -- two new shares for each existing share

from the earlier recommended ratio of 1:1.

- VSNL and HDFC have jointly launched online renewal facility for Internet subscription in

Mumbai, New Delhi, Calcutta, Chennai, Pune and Bangalore.

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2001

- The Company has commissioned Cisco's high-end gigabit switch routers to serve as important

internet exchange points in the country.

- The Company has issued Bonus Shares at the rate of 2:1.

- The race for the 25 per cent stake in Videsh Sanchar Nigam Ltd is hotting up with telecom

majors France Telecom, Essar and Singapore Telecom joining the likely-bidders list along with

Reliance and

Concert

- Joint venture between AT&T and British Telecom.

- The Company is all set to launch direct to home service throughout the country by the end of

this year.

2002

- Videsh Sanchar Nigam Ltd has informed that Shri Subodh Bharagava an independent part-

time-non-official Director has resigned from the post of Directorship from the Board of VSNL

and ceases to be Director with effect from January 17, 2002.

- Videsh Sanchar Nigam Ltd (VSNL) has informed BSE that Shri Ashok Wadhwa an

independent (parttime non-official) Director has resigned from the post of directorship from the

Board of VSNL and ceases to be Director with effect from January 23, 2002.

- Videsh Sanchar Nigam Ltd has informed that Shri Rakesh Kumar,\ Sr.Dy Director General

(ML), DoT has been appointed as Government Director on the Board of VSNL.

-Videsh Sanchar Nigam Ltd has informed BSE that the Chairman Mr R N Tata informed that

Mr S K Gupta the present Managing Director of the Company on his superannuation on

September 30, 2002 from VSNL will be appointed by Tatas as their senior executive for a period

of five years and will be deputed to VSNL for a period of upto two years as its Managing

Director.

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2003

-Videsh Sanchar Nigam (VSNL) signs an interconnect agreement with Bharat Sanchar Nigam

(BSNL) and Mahanagar Telephone Nigam (MTNL)

-Increases dial-up net access tariffs by 5 to 13 pc

-Re-emerges as the country's largest consumer internet service provider (ISP) in terms of

subscriber numbers

-NSE terminates VSNL from Futures &Options list

-Signs interconnect pact with BSNL & MTNL

-Invests Rs 350 cr in Tata Teleservices Ltd.

-Introduces VRS to its employees

-Receives in-principle approval from Board of Investment as also the Telecom Regulatory

Authority of Sri Lanka for formation of a company in Sri Lanka for undertaking international

telecommunication activities

-VSNL Launches 'Tata Indicom Total Internet' - An Integrated Net

Solution

2004

-VSNL unveils prepaid international calling card

-BSNL inks pact with VSNL for sharing ILD infrastructure

-VSNL embarks on due diligence of DishnetDSL

-VSNL launches call card

-Videsh Sanchar Nigam Ltd has signed an agreement with DishnetDSL to acquire the Internet

businesses of the Sterling Infotech group company for Rs 270 crore.

-VSNL floats wholly owned subsidiary in Singapore, VSNL Singapore PTE Ltd, to facilitate the

landing of cable in that country

-VSNL America joins CompTel / ASCENT

-VSNL UK launches Wholesale Voice Service in Europe

-Ratan Tata quits as VSNL chief

-VSNL introduces 'Software Services on Demand'

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-VSNL completes acquisition of Tyco Global Network a state-of-the-art under sea cable

network that spans 60,000 kms (37,280 miles) and the continents of North America, Europe and

Asia

-VSNL teams up with Bharti to share undersea cables

-VSNL slahes bandwidth prices to US, Singapore

-VSNL joins hands for fixed line telephony operator in SA

-VSNL - SNO receives PSTS license

2006

-VSNL signs agreement to acquire DIL, an Indian ISP

-VSNL- VSNL International Launches Next Generation Dedicated Global

Ethernet Service connecting North America, Europe, Asia &

-VSNL ties-up with Pizza Corner & Coffee World to offer Wi-Fi at 500 outlets

-VSNL to launch cyber cafes at railway stations

2007

-Videsh Sanchar Nigam Ltd (VSNL) has announced that leading international telecom service

providers, Etisalat, Saudi Telecom, Telecom Egypt, Telecom Italia Sparkle and the Company

have entered into a Memorandum of Understanding (MoU) to work jointly on the construction of

a new submarine cable (I-ME-WE) linking India, the Middle East and Western Europe.

-Videsh Sanchar Nigam Ltd (VSNL) has appointed Mr. N Srinath as the Managing Director of

the Company for a period of five years and the Chief Executive Officer of the VSNL Group of

Companies, with effect from February 02, 2007.

- Videsh Sanchar Nigam Ltd (VSNL) has informed that Mr. A K

Srivastava, DDG(AS), DoT, has been appointed as permanent (non-retiring) director on the

Board of the Company with effect from July 31, 2007.

- VSNL Launches Next Generation Dedicated Global Ethernet Service for The Australia

Market.

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2008

-Videsh Sanchar Nigam Ltd (VSNL) was presented with the ATLANTIC-ACM Global

Wholesale Best-in-Class Data Price award at the 4th annual Global Wholesale Carrier

Excellence Awards on January 14, 2008.

-VSNL partners with iPass for international Wi-Fi roaming in India.

- Tata Communications Ltd has appointed Mr. Ashok Jhunjhunwala as Additional Director

liable to retire by rotation.

-Company name has been changed from Videsh Sanchar Nigam Ltd to Tata Communications

Ltd

2009

- Tata Communications Ltd has launched Application Performance Visibility Service; Global

Service Helps Customers Ensure Optimal IT Performance

-Tata Communications launches EASY INTERNET targeted at SMBs

-Tata Communications Launches secured Secure Franchisee Connect for the Businesses in India

-Tata Communications joins consortium for cable project in Africa

2010

- Tata Communications, a leading provider of the new world of communications, today

announced the launch of its IP Exchange (IPX) solution, which will enable mobile service

providers to seamlessly and efficiently route all communication traffic, including voles, IP and

signaling solutions, via one IP pipe while supporting end-to-end QoS, security, multilateral

connectivity, and cascading payments.

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SWOT ANALYSIS

STRENGHTH

•

BRAND RECOGNITION

•

FINANCIAL SOUNDNESS

•

COST EFFECTIVE SERVICE

•

TECHNICAL EXPERTISE

•

HIGH CUSTOMER SATISFACTION

WEAKNESS

•

LOW ARPU

•

LIMITED VARIETY OF HANDSETS

•

UNABLE TO ATTRACT POST-PAID

USERS & CORPORATE CUSTOMERS

• LIMITED TARIFF PLANS

OPPORTUNITY

•

GOVT’S POLICY OF PROVIDING

UNIFIED LICENSE

•

INTRODUCTION OF 3G NETWORK

IN INDIA

•

CONTRIBUTION OF RURAL

SUBSCRIBER IS ONLY 24 % IN

TOTAL SUBSCRIBER BASE

•

INCREASING DEMAND OF

WIRELESS INTERNET

CONECTIVITY

THREAT

•

INCREASING NUMBER OF

COMPETITORS

•

REDUCING ARPU

•

COMPETITORS AGGRESSIVE

MARKETTING

•

COMPETITORS SUPERIORITY IN

BROAD BAND AND INTERNET

• CUSTOMERS SHIFT TOWARDS

GSM SERVICE PROVIDER’S

23

Indian Telecom Sector: An Overview

Role of Telecom Sector in Development Process

Telecommunications has been recognized the world-over as an important tool for socio-

economic development for a nation. It is one of the prime support services needed for rapid

growth and modernization of various sectors of the economy. It has become especially important

in recent years because of enormous growth of information technology and its significant

potential for the impact on the rest of the economy. The Telecom Sector, which has the

multiplier effect on the economy, has a vital role to play in economy by way of contributing to

the increased efficiency. The available studies suggest that income of business entities and

households increases by the use of telecom services. Thus it contributes to the growth in GDP.

The Government of India recognizes that provision of world class telecommunications

infrastructure and information is key to rapid economic and social development of the Country.

Present Status of the Sector

Telecommunications is one of the few sectors in India, which has witnessed the most

fundamental structural and institutional reforms since 1991. In recent times, country has

emerged as one of the fastest growing telecom markets in the world, particularly by the

unprecedented growth in mobile telephony. This high growth rate has been achieved in major

part due to sharp fall in tariffs. The rapid growth in Indian telecom services has prompted major

global manufacturers of telecom equipment to consider investing in India, paving the way for

extensive provision of modern communication services in rural areas and also provide a strong

boost to government revenues. With the successfully concluded auctions of the 3G and BWA

spectrum, this growth is set to become even more pronounced.

Indian telecom network has 787.29 million connections as on 31st December 2010 with 752.20

million wireless connections, Indian telecom has become the second largest wireless network in

the world after China. The future progress of telecom in our country is very encouraging. The

addition of over 18 million connections per month puts the telecom sector on strong footing. The

target of 600 million telephones by the end of 11th five year plan has been achieved in February,

2010. With such a pace of expansion the Department is certain to achieve the 11th plan targets.

Present status of telecom sector is given in the following Box:

24

Growth of Telecom SectorThe opening of the sector has not only led to rapid growth but also helped a great deal towards

maximization of consumer benefits as tariff have been falling across the board as a result of

unrestricted competition. Telecom sector has witnessed a continuous rising trend in the total

number of telephone subscribers. From a meager 22.8 million telephone subscribers in 1999, it

has grown to 621.28 million at the end of March, 2010. The total number of telephones stands at

787.29 million as on 31st December 2010 showing addition of 166.01 million during the period

from March to December 2010. Wireless\ telephone connections have contributed to this growth

as the number of wireless connections rose from 35.61 million in 2004 to 584.32 million in

March, 2010 and 752.20 million as on 31st December 2010. The wire line started to decline

from 40.92 million in 2004 to 36.96 million in March, 2010 and 35.09 million in December,

2010, albeit it is stagnating now.

25

Indian Telecom market is one of the fastest growing markets in the world. With its 787.29 million Telephone connection as on 31st December 2010, it is the

second largest network in the world after China. It is second largest wireless network in the world. Over 18 million connections are being added every month. The target of 600 million telephones by the end of 11th five year plan has been

achieved in February'10 itself. Wireless telephones are increasing at faster rate. The share of wireless telephones as

on 31st December 2010 is 95.54% of the total phones. The share of private sector in total telephone is 84.60%. Overall tele-density has reached 66.17%. Urban tele-density is about 148%, whereas

rural tele-density is at 31.22% which is also steadily increasing. Broadband connections increased to 10.74 million by November, 2010.

Marc h ' 0 4

Marc h ' 0 5

Marc h ' 0 6

Marc h ' 0 7

Marc h '0 8

Marc h ' 0 9

Marc h ' 1 0

December ' 1 0

Wire line

40.92 41.42 40.23 40.77 39.41 37.97 36.96 35.09

Wireless 35.61 56.95 101.86 165.09 261.08 391.76 584.32 752.20Gross Total

76.53 98.37 142.09 205.87 300.49 429.73 621.28 787.29

Annual Growth %

40% 29% 44% 45% 46% 43% 45% 27%

Changes in structure of composition of Telecom Sector Wire line vs. Wireless

The growth of wireless services has been substantial, with wireless subscribers growing at a

compounded annual growth rate (CAGR) of 57.1% since 2004. Wireless has overtaken wire

lines. The share of wireless phones has increased from 46.54% in 2004 to 95.54% in December,

2010.

wireless47%Wire line

53%

Average share of wireline and wireless phone in march 2004

wire line4%

wireless96%

Average share of wireline and wireless phone in march 2010

Private vs. Public

The fruits of the liberalization efforts of the Government are evident in the growing share of the

private sector. The private sector is now playing an important role in the expansion of telecom

services. The share of private sector in total telephone connections is now 84.60% as per the

latest statistics available for December, 2010 as against a mere 5% in 1999.

26

2004 2005 2006 2007 2008 2009 2010 Dec. 2010

39.27%47.05%

57.01%65.32%

73.53%79.16% 82.96% 84.60%

Growing avg share of private networkGrowing avg share of private network

2004 2005 2006 2007 2008 2009 2010 Dec. 2010

0.00%

50.00%

100.00%

150.00%

200.00%

250.00%

300.00%

20.79% 26.88%38.28%

48.10%66.39%

88.84%

122.00%

147.52%

7.02%8.95%

12.74%18.22%

26.22%

36.98%

53.46%

66.17%

1.55%1.73%

2.34%

5.89%

9.46%

15.11%

24.56%

31.22%

Teledensity (Number of telephones per 100 population)

Rural Tele-DensityUeban Tele-DensityTotal Tele-Density

27

The tele-density which was 7.02% in March 2004 increased to 53.46% in March, 2010

and 66.17% in December, 2010. Thus there has been continuous improvement in the

overall tele-density of the country.

The rural tele-density which was 1.55% in March 2004 has increased to 24.56% in

March, 2010 and 31.22% at the end of December 2010.

The urban tele-density has increased from 20.79% in March 2004 to 122% in March,

2010 and stands at 147.52% at the end of December, 2010.

For economic and social development of rural areas, rapid increase in rural tele-density is of

utmost importance. With the introduction of wireless phones in rural areas, there is increasing

trend in rural tele-density also. The Government is taking various measures under USOF for

expansion of mobile network in remote rural areas. As the urban areas have got saturated, private

service providers are also looking for further opportunities in rural areas. All these factors have

led to increasing trend in rural tele-density.

Potential for Further GrowthIndian telecom market has still a huge untapped potential to grow further. With a large

population yet to have access to telecommunication and tele-density still being 66.17% and rural

tele-density at 31.22%, there is significant growth opportunity for the sector, especially in rural

areas and 3G and BWA yet to make significant inroads. The rural market is expected to drive the

next round of growth for the voice based services while data services will create the much

needed churn with in maturing urban markets. The focus of the shareholder is now shifting to

these untapped rural areas for voice based services and urban areas for the data based services

which will provide engine for the second phase of the growth in Indian Telecom. Rural tele-

density target has been upgraded to 40% by 2014. There is talk about one billion telephones in

the country by 2015.

Broadband

It is necessary to increase the broadband connectivity for the knowledge-based society to grow

quickly and for reaping the consequent economic benefits. The auction of 3G/BWA Spectrum

has been successfully conducted. Newer Access technologies like BWA and 3G can significantly

transform the character of internet/broadband scenario in India. Several policies have been

announced and implemented to promote broadband in the country.

28

● As a result of these measures, the

broadband subscribers grew from

0.18 million in 2005 to 8.8 million

as on 31st March 2010 and 10.92

million, at the end of the

December, 2010.

● Broadband connectivity has been

provided in 4044 cities, 5431 block

headquarter s, 613 district

headquarters covering about

1,06,559 villages.

● Broadband coverage will get fillip with the setting up of 100,000 Common Service Centers

(CSCs) covering all the villages in the country. As on November 2010, 86521 CSCs have been

covered. They will provide internet access and benefit of e-governance to the common citizen.

Growth Dri vers

3G Telecom Services

The explosive growth of the telecom industry in India is being followed by the urge to move

towards better technology and the next level of service delivery. While the last 5 years have been

transformational for Indian telecom industry, the next few years look even more exciting. BWA

will overcome the key hindrance of ROW in India, while 3G has the potential to make the

29

2005 2006 2007 2008 2009 2010 405130

2

4

6

8

10

12

0.21.3

2.3

3.8

6.2

8.8

10.92

Broadband subscribers(in million)

● Scheme to provide 888832 wire line broadband connections to individual and

Government institutions by 2014.

●As on 30th November 2010, 232852 broadband connections and 670 kiosks provided.

● Institutional users such as Gram Panchayats Higher Secondary School and Public

Health Centres will be provided Broadband.

● Subsidy proposed for the wireless broadband active infrastructure such as BTS which

would provide broadband coverage to about 5 lakh villages.

● Initiative taken to strengthen OFC network in rural areas to provide sufficient back-

haul capacity to integrate voice and data traffic

mobile phone, a ubiquitous device for accessing the internet. The new opportunities opened

through new services such as 3G mobile, VAS,

Wi-MAX, M-Commerce, Mobile banking and Broadband wireless services will put emphasis on

deeper penetration into urban and rural areas.

Mobile Number Portability (MNP)

MNP allows any subscriber to change his service provider without changing his mobile phone

number. The much-awaited mobile number portability was launched on 25th November 2010 at

Haryana and on January 20, 2011 in entire country. With the rollout of MNP, mobile telecom

service providers will be forced to improve quality of their service to avoid loss of subscribers.

Foreign Direct Investment Policy

Foreign Direct Investment (FDI) was permitted in the telecom sector beginning with the telecom

manufacturing segment in 1991 - when India embarked on economic liberalisation. FDI is

defined as investment made by non-residents in the equity capital of a company. For the telecom

sector, FDI includes investment made by Non-Resident Indians (NRIs), Overseas Corporate

Bodies (OCBs), foreign entities, Foreign Institutional Investors (FIIs), American Depository

Receipts (ADRs)/Global Depository Receipts (GDRs) etc.

Present FDI Policy for the Telecom sector:

In Basic, Cellular Mobile, National Long Distance, International Long Distance, Value Added

Services and Global Mobile Personal Communications by Satellite, FDI is limited to 49 per cent

(under automatic route) subject to grant of license from the Department of Telecommunications

and adherence by the companies (who are investing and the companies in which investment is

being made) to the license conditions for foreign equity cap and lock-in period for transfer and

addition of equity and other license provisions.

Foreign Direct Investment up to 74 per cent permitted, subject to licensing and security

requirements for the following:

- Internet Service (with gateways)

- Infrastructure Providers (Category II)

- Radio Paging Service

FDI up to 100 per cent permitted in respect to the following telecom services:

30

- ISPs not providing gateways (Both for satellite and submarine cables)

- Infrastructure Providers providing dark fiber (IP Category I)

- Electronic Mail

- Voice Mail

The above is subject to the following conditions:

- FDI up to 100 per cent is allowed subject to the condition that such companies would divest 26

per cent of their equity in favour of Indian public within 5 years, if these companies are listed in

other parts of the world.

- The above services would be subject to licensing and security requirements, wherever required.

- Proposals for FDI beyond 49 per cent shall be considered by Foreign

Investment Promotion Board (FIPB) on a case-to-case basis.

In the manufacturing sector 100 per cent FDI is permitted under the automatic route.

In Basic, Cellular Mobile, paging and Value Added service, and Global Mobile Personal

Communications by Satellite, FDI is permitted up to 49 per cent (under automatic route) subject

to grant of license from Department of Telecommunications.

Foreign direct investment up to 74 per cent permitted, subject to licensing and security

requirements for the Internet Service (with gateways), Infrastructure Providers (category-II), and

Radio Paging Service

FDI up to 49 per cent is also permitted in an investment company, set up for making investment

in the telecom companies licensed to operate telecom services. Investment by these investment

companies in a telecom service company is treated as part of domestic equity and is not set of

against the foreign equity cap.

Manufacturing - 100 per cent FDI is permitted under automatic route.

FDI is subject to the following conditions

FDI up to 100 per cent is allowed subject to the conditions that such companies would divest 26

per cent of their equity in favour of Indian public in 5 years, if these companies are listed in other

parts of the world.

The above services would be subject to licensing and security requirements, Wherever required.

Proposals for FDI beyond 49 per cent shall be considered by FIPB on case to case basis.

31

Foreign Direct Investment

The liberalization in financial sector has beneficial results as that in telecom sector.

Liberalization with allowing entry to the private firms has resulted in unprecedented growth in

telecom sector. Today, telecom is the third major sector attracting FDI inflows after services and

computer software sector. At present 74% to 100% FDI is permitted for various telecom

services. This investment has helped telecom sector to grow. The total FDI equity inflows in

telecom sector have been US$ 1093 million during 2010-11 (April-November).

2000-2004 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11(April to November)

0

2000

4000

6000

8000

10000

12000

14000

1325 1455 2079 2557 38186376

8930 10023

1326 129624 478

1251

2558

2554 1093

Cummulative FDI in Telecommunications Secto (million US$)FDI in Telecommunication Sector (million US$)

India Telecom 2010

The Department of Telecommunications with Federation of Indian Chambers of Commerce and

Industry

(FICCI) organized the 5th exhibition and conference "India Telecom 2010" in December 2010 at

New Delhi with the objective of promoting and showcasing the capabilities & opportunities in

Indian Telecom Sector. The theme for this year's event was "Broadband for all". The

conference brought the Government, policy makers, potential investors, operators,

manufacturers, infrastructure providers, content providers, academia and non-governmental

organization together at a common platform to discuss how telecommunications can lead to an

"all-inclusive growth" of the Indian economy in terms of GDP, growth, employment and

revenues, among others. Hon'ble Minister of Communications & Information Technology graced

the occasion by addressing the participants during the inaugural ceremony on 9th December,

32

2010. The exhibition received a huge response with 273 exhibitors from across 40 countries and

5 country pavilions.

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)

Bharat Sanchar Nigam Limited (BSNL)

Name Bharat Sanchar Nigam Limited (BSNL)

Year of Establishment 2000

Company Profile Bharat Sanchar Nigam Ltd. is World's 7th

largest Telecommunications Company

providing comprehensive range of telecom

services in India: Wireline, CDMA mobile,

GSM Mobile, Internet, Broadband, Carrier

service, MPLS-VPN, VSAT, VoIP services, IN

Services etc. Within a span of five years it has

become one of the largest public sector unit in

India.

Global Presence/ Marketing

Network

It has a network of over 45 million lines

covering 5000 towns with over 35 million

telephone

connections.

Acquisitions / Strategic

Alliances

Future Prospect BSNL plans to expand its customer base from

present 47 million lines to 125 million lines

33

and infrastructure investment plan to the tune

of Rs. 733 crores (US$ 16.67 million) in the

next three years.

Name Mahanagar Telephone Nigam Limited

(MTNL)

Year of Establishment 1986

Company Profile MTNL was set up 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.

MTNL with a market share of about 13% of

the National telecom Network has a customer

base of 5.92 million. The Govt. of India

currently holds 56.25% stake in the company

Acquisitions / Strategic

Alliances

MTNL has formed a Joint Venture company in

Nepal by the name of United Telecom Ltd.

(UTL) in collaboration with Telecom

Consultants India Limited (TCIL) in 2001 for

Providing WLL based basic services in Nepal.

MTNL has set up its 100% subsidiary.

Mahanagar Telephone Mauritius Limited

(MTML) in Mauritius, for providing basic,

mobile and international long distance

34

Name

Videsh Sanchar Nigam Limited (VSNL)

Year of Establishment

1986

Company Profile The Videsh Sanchar Nigam Limited (VSNL) -

a

wholly Government owned corporation. 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.

Global Presence/ Marketing

Network

The company has 52 subsidiaries in 21

countries

as well as operations across four continents.

Acquisitions / Strategic

Alliances

VSNL acquired Nasdaq-listed Teleglobe

International Holdings Ltd for $239 million in

2005 Videsh Sanchar Nigam Ltd acquired

Tyco

Global Network, submarine cable system, for

USD 130 million in 2005

Future Prospect The company plans to expand its wholesale

voices services across the EU, to effectively

enable enterprise customers and retail voice

carriers to connect to India. VSNL is adding its

capacity to meet the overwhelming demand for

connectivity to India in the wholesale voice

services domain. The company is also offering

flexible agreements and charging methods to

35

meet the growing demands of the wholesale

voice market

Name

Bharati

Year of Establishment

1985

Company Profile 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 and the Infotel

group.

Global Presence/ Marketing

Network

The mobile business provides mobile & fixed

wireless services using GSM technology across

23 telecom circles while the Airtel Telemedia

Services business offers broadband &

telephone services in 94 cities.

Acquisitions / Strategic

Alliances

Bharti Telecom and British Telecom formed a

51%:49% joint venture, Bharti BT Internet for

providing Internet services, in 1998

Bharti Tele-Ventures acquired an effective

32.36% equity interest in Bharti Mobile

(formerly JT Mobiles), the cellular services

provider in Karnataka and Andhra Pradesh

circles in 1999 Bharti Telesonic entered into a

joint venture, Bharti Aquanet, With SingTel

36

for establishing a submarine cable landing

station at Chennai in 2001 A 50:50 joint

venture between Bharti and SingTel, to

undertake the largest infrastructure project

between Singapore and Indian companies in

2001

Future Prospect Bharti Airtel company is planning to set up

3000 more towers as part of enhancing their

rural coverage and will now focus on rural and

semi-urban areas.

Name

Reliance Communications

Year of Establishment 1999

Company Profile Reliance Telecom's cellular services are

available

in 340 towns within its eight-circle footprint.

Reliance Infocomm also offered for the first

time in India, mobile data services though its

RWorld mobile portal. This portal leverages

the

data capability of the CDMA 1X network.

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 aimed at enhancing

productivity of enterprises and individuals.

37

Global Presence/ Marketing

Network

Reliance Communications has IP-enabled

connectivity infrastructure comprising over

150,000 kilometers of fiber-optic cable systems

in India, the US, Europe, Middle East, and the

Asia Pacific region.

Acquisitions / Strategic

Alliances

International wholesale telecommunications

service provider, FLAG Telecom

amalgamates with Reliance Gateway, a wholly

owned subsidiary of Reliance Infocomm in

2004

Name

Vodafone

Year of Establishment Acquired majority stake in Hutch Essar in

India,

by buying out complete stake of Hutch in

2007, Essar is still minority stakeholder in

company

Company Profile Vodafone Essar in India is a subsidiary of

Vodafone Group Plc and commenced

operations in 1994 when its predecessor

Hutchison Telecom acquired the cellular

licence

for Mumbai. Vodafone Essar now has

operations in 16 circles covering 86% of

India's

mobile customer base, with over 45.78 million

customers. Vodafone Essar, under the Hutch

brand, has been named the 'Most Respected

38

Telecom Company', the 'Best Mobile Service

in

the country' and the 'Most Creative and Most

Effective Advertiser of the Year'.

Global Presence/ Marketing It has operations in 25 countries across 5

continents and 40 Network partner networks

with over 200 million customers worldwide.

Future Prospect Vodafone Essar is expecting to touch over 35

million customers across 400,000 shops and

thousand of hutch’s own employees along with

employees of its business associates.

Name

Idea

Year of Establishment 1995

Company Profile Idea Cellular is part of the Aditya Birla

Group, which is India's first truly multinational

corporation. Aditya Birla Nuvo Ltd. holds 35.7

per cent, Birla TMT Holdings Ltd. 44.9 per

cent, Grasim 7.5 per cent, and Hindalco 10.1

per cent in Idea.

Global Presence/ Marketing

Network

Has a customer base of over 17 million, IDEA

Cellular has operations in Delhi, Maharashtra,

Goa, Gujarat, Andhra Pradesh, Madhya

Pradesh, Chattisgarh, Uttaranchal, Haryana,

UPWest, Himachal Pradesh and Kerala.

Acquisitions / Strategic Merged with Tata Cellular Limited in 2001,

39

Alliances

thereby acquiring original license for the

Andhra

Pradesh Circle Acquired RPG Cellular Limited

and consequently the license for the Madhya

Pradesh (including Chattisgarh) Circlein 2001

In

2004 acquired Escotel, incumbent cellular

service provider in Haryana, UP(W) & Kerala

and new licensee in HP Acquired Escorts

Telecommunications Limited (subsequently

renamed as Idea Telecommunications Limited)

in 2006 Merger of seven subsidiaries with Idea

Cellular Limited in 2007

Future Prospect Idea also plans to enter rural and neglected

circles as a strategy to gain subscribers. Other

advancements in the telecom industry will help

it cut costs - use of e-mail to send bills to

customers; sharing cell sites; smaller base

transmission stations that will mean lesser

infrastructure requirements and expenses and

independent tower operators. Along with its

plan to go for a national long distance licence,

it

will also look at international long distance in

the near future.

CHALLENGES AND OPPORTUNITIES

Opportunities

40

The telecom sector has been one of the fastest growing sectors in the Indian economy in the past

4 years. This has been witnessed due to strong competition that has brought down tariffs as well

as simplification of policy environment that has promoted healthy competition among various

players..

The mobile sector alone has been growing rapidly and has emerged as the fastest growing market

in the whole worlds. Currently of a size nearing 70 million (GSM and CDMA), this sector is

expected to reach a size of nearly 200 million subscribers by financial year 2008. The

government has eased the rules regarding inner circle and intra circle mergers. This has led to a

slew of mergers and acquisitions in the recent past. Also as the sector is moving closer to

maturity, further consolidation is a reality and this will lead to the survival of more profitable

players in this segment In order to further promote the use of Internet in the country the

government is taking proactive steps to develop this sector with the help of the various players in

this segment. For this purpose, the use of broadband technology is being mooted and this will go

a long way in improving the productivity of the Indian economy as well as turn out to be the next

big opportunity for telecom companies after the mobile communications segment Non-voice

services and VAS are the gold mines. The big takeoff is expected with the rollout of 3G services

in early 2007, once the spectrum issues are sorted out. Internet users base fast reaching near the

English speaking population base. Local language and content required for further growth

Infrastructure equipment cost is down to a fraction of what prevailed just a few years ago.

Operators can plan better expansion plan now increased viability for the operators to expand to

semi-urban and rural markets, hence, accelerate growth further it’s not without reason that India

is tipped to be the world’s third-largest economy by 2050! No wonder if it happen much earlier

Investors can look to capture the gains of the Indian telecom boom and diversify their operations

outside developed economies that are marked by saturated telecom markets and lower GDP

growth rates. At a time when global telecom majors are struggling to cope with their losses and

the rollout of 3G networks, which has been a non-starter for close to a year now; India, with its

telecom success story, represents an attractive and lucrative destination for investment.

DATA

41

COLLECTION OF DATA

Data collection is a term used to describe a process of preparing and collecting data - for

example as part of a process improvement or similar project. The purpose of data collection is to

obtain information to keep on record, to make decisions about important issues, to pass

information on to others. Primarily, data is collected to provide information regarding a specific

topic.

In this project I have collected the data related to the prospective channel partners has bin

collected with respect to the their financial turnover and other details.

PRIMARY DATA

The questionnaire constituted of 8 questions in total which were formed with the view of

obtaining the exact analysis of whether the Channel partners in the market for the new

prospective channel partners.

QUESTIONNAIRE

42

COMPANY NAME  

Name of the Key contact  

Designation of the key contact  

CORRESPONDENCE ADDRESS  

PINCODE  

LANDLINE NUMBER (S)  

MOBILE NUMBER  

E.MAIL ID  

URL /Webiste  

Approx Last FY Turnover  

Nature of Organization

Proprietorship Partnership Pvt Ltd Public Ltd /Listed Co

Number of People in the Organization

Sales Technical Admin/Support Tele-callers Total

Current Top 5 Business Partners

Vendor Name Approx Revenue

Panasonic Crystal Beetle Polycom Others TOTAL

Customer Profile (Segment)

Segments

Segment wise revenue Split (%)

Approx No of Customers in that Segment

43

Large Enterprise / Large Corporate (> 500 Employees Org)   

SMB (1-499 Employees Org)    

Government    

Home Consumer    

Resellers    

Other (Specify) Customer Profile (Industry)

IT/Software/Web Development BPO's/KPO's Education Manufacturing Banking /Financial Services Media & Entertainment Companies Pharma Others (Pls specefiy) Total

Services

Currently Deal

(Yes / No )

Approx Annual

Revenue

Name of Service Provider

Network Services      

Broadband      

ILL      

MPLS      

IPL/NPL      

CDN      

Voice Solutions      

Managed Voice over IP      

International Private Line CC      

IP Voice Connect      

Voice VPN      

Audio Conferencing      

Data Center Solutions      

Co-Location Services      

Managed Hosting      

Managed Storage      

Virtualization      

Cloud based Solutions      

IaaS - InstaCompute      

44

 SaaS   - InstaOffice      

 SaaS   - Insta CRM      

 SaaS   - HRMS      

Security      

Firewall      

Virtual Unified Threat Management      

Intrusion Detection Services / Intrusion Prevention Services      

Managed Distributed Denial Of Service      

Total      

Secondary Data

The data provided by the company.

45

46

Findings & Analysis

Most of the channel partners are interested in the having the partnership with Tata

Communications. Most of them have very good market coverage as seen in the table, but very

few deserve for the same and very good market reputation.

They are as follow,

CREW Business System Ultrasonic system Speedo communication Excel Solutions Perfect Electronics Cosmos Pvt. Ltd

Recommendations

Very few are capable of handling the partnership of the Tata Communications as they are

mentioned above.

47

Bibliography

http://www.cci.in/pdf/surveys_reports/indias_telecom_sector.pdf

http://business.mapsofindia.com

www.tatacommunications.com/

en.wikipedia.org

48

Synopsis

Topic   Business Partner Profiling for TCL SMB Business in Mumbai  

Project Objective   Business development for the TCL SMB department and building the brand

image of TCL over TTML.  

Methodology to be adopted  

Market survey for getting information of the prospective business partners and existing business

partners of the TCL understanding there efforts taken by them for building the business.  

Brief Summary of project

Understanding the product line offered by the TCL to the channel partners to distribute to the

consumers. meeting the existing channel partners and prospective channel partners of the TCL.

Scrutinizing their profile for the business development. if the particular partner is confused

between TTML and TCL then clearing him regarding that.

49