Telecom

INTRODUCTION

Telecommunication is the transmission of messages over significant distances for the purpose of

communication. In earlier times, telecommunications involved the use of visual signals, such as

smoke, telegraphs, signal flags, and optical heliographs, or audio messages via coded drumbeats, lung-

blown horns, or sent by loud whistles.

Telecom Sector in India

Started in 1851 when the first operational land lines were laid by the government near Calcutta (seat of

British power). Telephone services were introduced in India in 1881.

The Indian telecommunications industry is one of the fastest growing in the world and India is

projected to become the second largest telecom market globally by 2010.

Foreign Investment in Telecom Sector , India (F.D.I)

The foreign direct investment in telecom has been hiked up from 49% to 74%.

Rs 700 –900 million over the next 5 years.

FDI inflow 9950.94 cores in telecom.

Countries like Europe, Korea, and Japan telecom are likely to enter India, as India is seen as fastest

growing telecom market in world.

Companies Subscriber Base (Mn) Market Share March’09 (%)

AIRCEL 16.76 4.63

AIRTEL 88.38 24.44

BPL 2.00 0.55

BSNL 47.58 13.16

IDEA 40.02 11.07

MTNL 4.30 1.18

RELIANCE 66.30 18.34

Tata Teleservices 32.79 9.07

VODAFONE 63.34 17.52

TOTAL 361.49 100

Source: COAI & TRAI

The Communication Industry in India is one of the rapidly emerging sectors in India and is estimated

to surface as the second biggest international telecom market. As per the report carried out by Telecom

Regulatory Authority of India (TRAI), Indian communication industry has registered a 3.5% increase

in its total telecom subscribers in December 2009. The sector touched 562.21 million in its total

number of subscribers within a month, against 543.20 million in November 2009. The growth in

communication industry was triggered by an increase in the revenues generated from both landline and

mobile facilities. On December 31, 2009 the sector earned the revenue of USD 8.56 billion. As per the

Business Monitor International report, the nation is all set to include 8 to 10 million cellular phone

subscribers on monthly basis.

It's the technological revolution that at times brings surprising opportunities for some nations. India,

though not among the front runners in terms of economic growth, has successfully utilized such

opportunities in the revolution to become an IT hotspot. For the past several years, India has been an

increasingly favored destination for customized software development. As a result, a number of

software companies in India have come up. Not only the number of players has increased in the Indian

IT market, but at the same time, Indian software companies have done considerably well in the global

market.

All those people who are crazy about speed automobile are indeed prize possession for them. With the

increase number of car and two wheeler loan and finance scheme available in the today’s market, it is

not that difficult to purchase the same. However if u have already decided to purchase vehicle, than

before the act of purchase, do get to know some of the dominant players who rule this market. The

reason behind the immense growth of the India Car Industry can be attributed to the availability of car

loans, affordable rates of interest, smooth repayment facilities and the deductions offered to the

customers by the retailers. The constant changes in the existing car models with regard to design,

innovation, technology, and colors, have led to a fiercely competitive market. Now that technology

and innovation are not alien concepts for Indian car makers, Indian cars are becoming increasingly

sleek, stylish, and luxurious.

OBJECTIVE

An Industry Analysis is an assessment of the profitability of an industry. In order to perform this

assessment, your objective is to characterize the driving forces of competition within an industry. The

purpose of this analysis is to help management create and maintain a competitive advantage that

allows the company to excel in the industry. The purpose of industry analysis is to review prevailing

conditions within specific industry and its segments. The company's industry obviously influences the

outlook for the company.

Some of the objectives of conduction the study are as follows:

To gain knowledge of evaluating intrinsic value of a firm.

To acquire practical exposure of financial analysis of an enterprise.

To get familiarity of scheming comparative efficiency of different firms.

To analyze the profitability position of various companies in their sector.

To study the emerging trend of different companies

To study the opportunity exist for different market

To know the future out let of various industries

To know the emerging technologies in different enterprise

To study the financial performance of various organisation

RESEARCH METHODOLOGY

Research is a systematic effort to gain new knowledge. Research is a movement of knowledge from

known to unknown from the available place to the required place. Those methods which are used by

the researcher during the course of studying are research problem are termed as research methods.

Research is a careful investigation or the inquiry through search for the facts in the branch of

knowledge. Research methodology refers to the methods, technique that are used for the activities

involved in performing the research operations such as making observation, recording data etc.

Research methodology is a way to systematically solve the research problem. It is necessary

for a researcher to know the research methods/techniques along with the methodology. Researchers

also need to understand the assumptions underlying various techniques and they need to know the

criteria by which they can decide that certain techniques and procedures will be applicable to certain

problems. All this means that it is necessary for the researcher to design his methodology for his

problem as the same may differ from problem to problem

.

Research Design:

A research design is the arrangement of conditions for collection and analysis of data in a manner that

aims to combine relevance to the research purpose with economy in procedure. The design includes an

outline of what the researcher will do from writing the hypothesis and its operational implications to

the analysis of data.

Method of data collection:

Secondary data is used as a reference for the study of this research because resource was available on

their personal website. The secondary data are collected through various official websites of the

companies, and CMIE database.

Primary Data:

Primary data refers to data that is collected afresh and recorded for the first time. Primary data are

those data i.e. collected by the researcher himself. It thus happens to be original in nature. The various

methods of collecting primary data are performing surveys, census, through observation or through

correct communication with respondents. But basic manner of primary data collection is survey

method.

Secondary Data:

Secondary data refers to that which has already been collected by someone else. Secondary data for

the study was collected from:

Published literature

Company released data and broachers

Internet

Commercial Service

Books

The success of the analysis mostly depends on the methodology on which it is carried out. The

appropriate methodology will improve the validity of the findings. In this study, secondary source of

data is the main source of study to make the findings and conclusions.

Objective of Study:

To study current trends in the sectors of study

To study current financial scenario in the companies of related sectors

To study the product groups and ranges in each product group related to respective companies

To study the marketing strategies of the companies

To study the customer buying behavior and current sales pattern of the companies

To study the impact of the policies of companies on customers

To study the customer relationship management i.e. after sales scenario of the companies

To study policies and procedures related to the training of the employees of the companies

To study the supply chain management and distribution management of the companies

To study the Management Information System i.e. IT infrastructure related to the companies

To study the future perspective of the companies and their impact on the trends and growth of

the sector

To indulge whether particular products are meeting the expectation level of the companies.

To study the effect of recession on the companies and their trends with respect to the sectors

Scope:

The scope of the study is to gain the knowledge about the inventions and innovation related to the

current scenarios of the market concerned with the companies and their impact on the sectors like

pharmaceutical, FMCG, Retail. This study is helpful in understanding the future strategies as well as

projections of the companies that make them profitable and their impact on the sectors.

By this study, the most successful trends and scenario of the sectors can be understood easily and the

products that make the companies as well as sectors successful and profitable.

Limitations of the Research Methodology:

The data for the study relied on at many places is secondary data. The Secondary data is

subject to authenticity.

The data collected from the internet that is controlled by the reports therefore the data must be

from the authentic websites.

The data must be collected from journals, magazine and news papers for study because they are

authentic and reliable.

The data collection does not depend on the actual demand of the customer and their

perceptions on the trends and products of the companies.

The study has not been conducted over the particular time period.

The study has not been conducted over the particular products to know about the consumers

perceptions about the product

TATA COMMUNICATIONS

Overview

Tata Teleservices Limited (TTSL) is a part of the Tata Group of companies, an Indian conglomerate. It

operates under the brand name Tata Indicom in various telecom circles of India. The company forms

part of the Tata Group's presence in the Telecommunication Industry in India, along with Tata

Teleservices (Maharashtra) Limited (TTML) and TATA COMMUNICATIONS LTD.

In February this year, TTSL announced that it would provide CDMA mobile services targeted towards

the youth, in a joint venture with Virgin, UK, on a Franchisee model basis. Interestingly, Virgin

Mobile is a direct competitor of TTSL in a number of telecom circles across the country.

Tata Teleservices is part of the Tata Group, that has over 87 companies, over 330,000 employees and

more than 2.8 million shareholders. Tata Teleservices spearheads the Group’s presence in the telecom

sector. Having pioneered the CDMA 3G1x technology platform in India, Tata Teleservices has

established 3G ready telecom infrastructure. It partnered with Motorola, Ericsson, Lucent and ECI

Telecom for the deployment of its telecom network.

The global reach and industry expertise of Tata Communications drives and delivers a new world of

communications. The company leverages its Tata Global Network, vertical intelligence and leadership

in emerging markets to deliver value-driven, globally managed solutions

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 collocation 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), Nepal (United Telecom

Limited), and subject to approval by the Chinese government, China (China Enterprise

Communications)

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. (NYSE: TCL)

Company Profile

Tata Communications Limited along with its global subsidiaries (Tata Communications) is a leading

global provider of the new world of communications. The company leverages its Tata Global

Network, vertical intelligence and leadership in emerging markets, to deliver value-driven, globally

managed solutions to the Fortune 1000 and mid-sized enterprises, service providers and consumers.

The Tata Communications portfolio includes transmission, IP, converged voice, mobility, managed

network connectivity, hosted data center, communications solutions and business transformation

services to global and Indian enterprises & service providers as well as, broadband and content

services to Indian consumers. The Tata Global Network encompasses one of the most advanced and

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

400 PoPs and more than one million square feet data center space. Tata Communications serves its

customers from its offices in 80 cities in 40 countries worldwide. Tata Communications has a strategic

investment in South African operator Neotel, providing the company with a strong anchor to build an

African footprint.

The number one global international wholesale voice operator and number one provider of

International Long Distance, Enterprise Data and Internet Services in India, the company was named

"Best Wholesale Carrier" at the World Communications Awards in 2006 and was named the "Best

Pan-Asian Wholesale Provider" at the 2007 Capacity Magazine Global Wholesale

Telecommunications Awards for the second consecutive year.

Becoming the leading integrated provider to drive and deliver a new world of communications, Tata

Communications became the unified global brand for VSNL, VSNL International, Teleglobe, Tata

Indicom Enterprise Business Unit and CIPRIS on February 13, 2008.

Tata Communications Ltd. is a part of the $62.5 billion Tata Group; it 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.

Business Areas

The Company operates under three main business segments globally. They are.

ENTERPRISE

As an enterprise the company provides following services

Network services

Global media and Entertainment solutions

Network security

Professional services and outsourcing

Voice

As a service provider the company provides

Voice services (Mobile, Broadband, IPX, etc. )

IP services (Transit, CDN, etc.)

Transmission ( Ethernet over MPLS, IP-VPN, etc)

Mobile ( Roaming, Signaling, M-commerce, etc)

Other Services

Some of the other services provided are as follows

Business Areas

VoiceEnterprise Other Services

Broadband

WI-FI

Global Calling Card

Total Internet

Global Industry Recognition

Best Market Strategy: Global Wholesale Telecommunications Awards

Most Innovative Managed Service: 2008 Telephony Innovation Award

Best Technology Innovation: 2008 Pilot House Award

#1 Enterprise Data Services Provider in India: Frost & Sullivan Awards, 2008

Best Long Distance Operator; Best Internet & BB Services Operator: Tele.Net Awards 2008

Outlook

�At the current market price of Rs.371.00 the stock is trading at a P/Ex of 70.63x for FY10E

and 52.35x for FY11E.

The EPS of the stock is expected to be at Rs.5.25 and Rs.7.09 for FY10E and FY11E

respectively.

On the basis of price to book value, the stock trades at 1.57x and 1.52x for FY10E and FY11E

respectively.

Direct-to-Home (DTH) service operator Tata Sky would add 3.5 million more subscribers by

2012 and focus on adding customer-oriented innovative applications.

Tata Communications and China Telecom Corp will jointly build a 500-km optical fibre cable

network between India and China over the next 12 months.

Tata Communications has signed agreements with operators in the Middle East to build a new

cable system for the region.

Tata Communications and Mahindra Special Services Group (MSSG) have signed a major

security services agreement to leverage each other’s strength to offer a complete suite of security

services to Indian enterprises 13

Tata Communications has signed a partnership agreement with Sugar CRM, a leading provider

of commercial customer relationship management (CRM) software, to provide its award-winning

CRM applications as the basis for Tata`s entry as a SaaS provider.

NDTV Convergence has chosen Tata Communications for its live-broad cast service, a high -

quality flash based streaming service, to broadcast three national channels in India.

RELIANCE COMMUNICATION

Overview

The Late Dhirubhai Ambani dreamt of a digital India — an India where the common man would have

access to affordable means of information and communication. Dhirubhai, who single-handedly built

India’s largest private sector company virtually from scratch, had stated as early as 1999: “Make the

tools of information and communication available to people at an affordable cost. They will overcome

the handicaps of illiteracy and lack of mobility.”

It was with this belief in mind that Reliance Communications (formerly Reliance Infocomm) started

laying 60,000 route kilometers of a pan-India fibre optic backbone. This backbone was commissioned

on 28 December 2002, the auspicious occasion of Dhirubhai’s 70th birthday, though sadly after his

unexpected demise on 6 July 2002.

Reliance Communications has a reliable, high-capacity, integrated (both wireless and wire line) and

convergent (voice, data and video) digital network. It is capable of delivering a range of services

spanning the entire infocomm (information and communication) value chain, including infrastructure

and services — for enterprises as well as individuals, applications, and consulting.

Today, Reliance Communications is revolutionizing the way India communicates and networks, truly

bringing about a new way of life.

Company Profile

July 31, 2009

Reliance Communications (RCOM) Announces its Financial Results for the quarter ended

June 30, 2009

Net Profit Higher by 8.3% at Rs. 1,637 Crore (US$ 342 Million) Revenues Higher by 15.5%

at Rs. 6,145 Crore (US$ 1,283 Million) Net Adds Market Share Increased From Post GSM

18% to 23%

India ’s leading integrated telecom company

Reliance Communications is the flagship company with over of the Anil Dhirubhai

Ambani Group (ADAG) of companies. Listed on the National Stock Exchange and the

Bombay Stock Exchange, it is India’s leading integrated telecommunication 85 million

customers

The Reliance Anil Dhirubhai Ambani Group currently has a net worth in excess of Rs.

64,000 crore (US$ 13.6 billion), cash flows of Rs. 13,000 crore (US$ 2.8 billion), net

profit of Rs. 8,400 crore (US$ 1.8 billion).

Reliance’s business encompasses a complete range of telecom services covering mobile

and fixed line telephony. It includes broadband, national and international long distance

services and data services along with an exhaustive range of value-added services and

applications. Its constant endeavour is to achieve customer delight by enhancing the

productivity of the enterprises and individuals it serves.

Reliance Mobile (formerly Reliance India Mobile), launched on 28 December 2002,

coinciding with the joyous occasion of the late Dhirubhai Ambani’s 70th birthday, was among

the initial initiatives of Reliance Communications. It marked the auspicious beginning of

Dhirubhai’s dream of ushering in a digital revolution in India. Today, Reliance can proudly

claim that it was instrumental in harnessing the true power of information and

communication, by bestowing it in the hands of the common man at affordable rates.

Reliance endeavors to further extend its effort beyond the traditional value chain by

developing and deploying complete telecom solutions for the entire spectrum of society.

Business Areas

Reliance communication mainly provides services in the following areas:

Prepaid mobile

Postpaid Mobile

Handsets

R World

Internet & Broadband

Landline Phone

IPTV

BIG TV - DTH Service

Internet Telephony

International Calling Service

Recent Milestones

2009 31 July

Reliance Communications Q1 net up at Rs 1637 cr

Reliance Communications, India's second-biggest mobile phone operator, posted an 8.3 per cent rise in

quarterly profit on Friday on higher users. Reliance communications said its net profit rose to Rs 1637

crore ($340 million) in its fiscal first quarter ended June, from Rs 1512 crore in the same period last

year.

March 12

Reliance Communications launched its Broadband plus Netconnect Datacard (HSD).

2008 January 12

Reliance Communications receives Start-up GSM Spectrum

January 16

Yahoo partners with Reliance Communications to provide Yahoo One Search for its

CDMA and GSM customers.

January 31

RCOM's Q 3 Net Profit increases by 48.5% and Revenues Up by 29.8 %. Remains the

most profitable Telecom Company in India.

February 4

Reliance Communications offers Lifetime Validity at Rs 199

RCOM’s subsidiary Infratel files Draft Red Herring Prospectus with SEBI

February 5

Reliance Mobile strengthens its religious content portfolio on Mobile by tie-up with

Sadhana TV

February 14

RCOM in partnership with CanvasM, launches Multiplayer Mobile Games

February 19

HDFC Bank ties up with RCOM, turns every Reliance Mobile into a credit card

February 27

Reliance Communications consolidates Global Telecom Business under “Business

Globalcom”

Reliance Communications forays into International Mobile Market with GSM License in

Uganda.

March 3

Reliance Communications drops prices of Internet Data Cards

March 10

Reliance Communications announces ESOPs for over 20,000 employees

March 20

Reliance Communications and HTC forge Strategic Alliance

March 27

Corporation Bank Launches Banking Services on Reliance Mobile World

April 1

Reliance Communications forays into IT space, launches Reliance Technology Services

Company

April 9

RCOM launches Educational Portal on Reliance Mobile Phones

April 25

Reliance Globalcom unit Reliance Infocom BV, Netherlands acquires Global WiMAX

Operator eWave World

April 29

Reliance Communications Announces Unlimited Free STD calls

April 30

Reliance Globalcom Launches Passport Global SIM

RCOM's Net Profit up by 70.8% to Rs 5,401 crore

May 2

Reliance Communications’ Net Profit up by 70.8% to Rs 5,401 crore (US$ 1,350

million), Revenues higher by 31.8% to Rs.19, 068 crore (US$ 4,765 million) and

EBIDTA increases by 43.3% to Rs.8, 199 crore (US$ 2049 million)

May 12

Reliance Communications and Alcatel form Joint Venture to offer Managed Network

Services to telcos across the globe

May 26

Reliance Globalcom acquires UK based VANCO Group Limited

June 24

Reliance Globalcom, Stealth Communications forge Strategic Alliance to extend VOIP

Network across 50 countries

July 12

CA Exam Results on Reliance Mobile

July 22

Reliance Communications Mobile Subscriber base crosses 50 Million

July 29

CA Professional Exam Results on Reliance Mobile

July 31

Reliance Communications (RCOM) announces its financial results for the first quarter

ended June 30, 2008. Net Profit up by 23.9% to Rs. 1,512 crore (US$ 352m)

AIRTEL

Bharti Airtel is one of India's leading private sector providers of telecommunications services based on

an aggregate of 66,689,943 customers as on April 30, 2008, consisting of 64,370,434 GSM mobile and

2,319,509 Bharti Telemedia subscribers.

The businesses at Bharti Airtel have been structured into three individual strategic business units

(SBU’s) - mobile services, telemedia services (ATS) & enterprise services. The mobile services group

provides GSM mobile services across India in 23 telecom circles, while the ATS business group

provides broadband & telephone services in 94 cities. The enterprise services group has two sub-units

- carriers (long distance services) and services to corporate. All these services are provided under the

Airtel brand.

Company shares are listed on The Stock Exchange, Mumbai (BSE) and The National Stock Exchange

of India Limited (NSE).

The company has a strategic alliance with SingTel. The investment made by SingTel is one of the largest

investments made in the world outside Singapore, in the company. The company’s mobile network

equipment partners include Ericsson and Nokia. In the case of the broadband and telephone services

and enterprise services (carriers), equipment suppliers include Siemens, Nortel, Corning, among

others. The Company also has an information technology alliance with IBM for its group-wide

information technology requirements and with Nortel for call center technology requirements. The call

center operations for the mobile services have been outsourced to IBM Daksh, Hinduja TMT, Teletech

& Mphasis

Company Profile

Airtel comes to you from Bharti Tele-Ventures Limited - a part of the biggest private integrated

telecom conglomerate, Bharti Enterprises. A consortium of giants in the telecommunication business.

In its six years of pursuit of greater customer satisfaction, AirTel has redefined the business through

marketing innovations, continuous technological up gradation of the network, introduction of new

generation value added services and the highest standard of customer care.

Bharti is the leading cellular service provider, with an all India footprint covering all 23 telecom

circles of the country. It has over 12 million satisfied customers.

Cellular telephony was introduced in India during the early 1990s. At that time, there were only two

major private players, Bharti (Airtel) and Essar (Essar) and both these companies offered only post-

paid services. Initially, the cellular services market registered limited growth.

Moreover, these services were mostly restricted to the metros. Other factors such as lack of awareness

among people, lack of infrastructural facilities, low standard of living, and government regulations

were also responsible for the slow growth of cellular phone services in India.

Although the cellular services market in India grew during the late 1990s (as the number of players

increased and tariffs and handset prices came down significantly) the growth was rather marginal. This

was because the cellular service providers offered only post-paid cellular services, which were still

perceived to be very costly as compared to landline communications.

Business Areas

Bharti Airtel

Telemedia EnterpriseMobility

DTH

Enterprise ServicesInternet

SME

Media

Entertainment

Milestones

1 Mobile phone operator, Bharti Airtel, became the first Indian telecom company to serve 50

million customers last month, and is now the world’s tenth largest wireless carrier.

2 Bharti has doubled its user base in the past 14 months alone, and hopes to reach 100 million

subscribers by 2010, according to company executives.

3 “Our next 50 million will largely come from rural India as our plan is to reach 5,200 census

towns and over five lakh villages, covering 96 per cent of the Indian population,” said Bharti Airtel

president and CEO, Manoj Kohli, at a news conference this week.

4 Bharti Airtel, India’s leading telecommunication services provider, today announced that it had

crossed the 50 million customer mark. With this, Bharti Airtel has achieved the distinction of

becoming the fastest private telecom company in world to achieve this landmark in a single country -

within 143 months of start of operations. The 50 million customer base covers mobile as well as

broadband & telephone customers.

5 Commenting on this major global landmark, Mr. Akhil Gupta, Joint Managing Director, Bharti

Airtel said, “We are delighted to have achieved this major landmark, which puts Bharti Airtel amongst

the top telecom companies in the world. It underlines the strength of our unique business model and

our vision to provide affordable services like lifetime prepaid to customers across the length and

breadth of the country. I would like to thank our partners for having shared our vision. This milestone

highlights the emergence of India as one of the top telecom markets in the world and we are proud to

have been at the forefront of this growth. Going forward, we believe this growth momentum will

remain intact and we are gearing towards the 100 million customers mark.”

6 Bharti Airtel crossed the 10 million customer mark in November 2004. In July last year, it

crossed the 25 million customer mark.

7 The company added the next 25 million customers in just 14 months. This is amongst the fastest

rate of customer additions by any telecom company in the world.

8 Mr. Manoj Kohli, President & CEO, Bharti Airtel added, “This is a very proud moment for us

and I would like to thank our 50 million customers for believing in Airtel. It is a tribute to our

commitment to provide best-in-class services to our customers and lead the market with exciting

innovations. We are committed to create a world-class organization and benchmark it with the best in

the world. As the market gets ready for the next wave of growth, we are committed to expanding our

telecom networks wider and deeper across the country and partner India’s growth story.”

9 In the mobile business, Bharti Airtel plans to make considerable investments in Network

expansion to establish presence in all census towns and over 500,000 villages across India by 2010,

thereby covering 95% of the country’s total population. The company’s strategic focus will be on

further strengthening the Airtel brand through best-in-class customer service, which is backed by wide

national distribution.

In the Enterprise business, Bharti Airtel will invest substantially in the long distance business to

achieve the scale of a global carrier within next 2-3 years. It is also strengthening the corporate

business towards becoming a preferred managed services partner for the top 2000 corporations. In

Broadband & Telephone SBU, Bharti Airtel will initiate large-scale deployments of broadband

network infrastructure in 94 towns, with a sharp focus on the home and SME segments. It is readying

to offer triple play to its customers with the launch of its IPTV service.

Aircel

The Aircel Group is a joint venture between Maxis Communications Berhad of Malaysia and Apollo

Hospital Enterprise Ltd of India, with Maxis Communications holding a majority stake of 74%.

Aircel commenced operations in 1999 and became the leading mobile operator in Tamil Nadu within

18 months. In December 2003, it launched commercially in Chennai and quickly established itself as a

market leader – a position it has held since.Aircel is currently operational in 22 telecom circles of

India.

Aircel began its outward expansion in 2005 and met with unprecedented success in the Eastern frontier

circles. It emerged a market leader in Assam and in the North Eastern provinces within 18 months of

operations. During this period, the company gained a foothold in 9 circles including Chennai, Tamil

Nadu, Assam, North East, Orissa, Bihar, Jammu & Kashmir, Himachal Pradesh and West Bengal.

The Company has currently gained a momentum in the space of telecom in India post the allocation of

additional spectrum by the Department of Telecom, Govt. of India for 13 new circles across India.

These include Delhi (Metro), Mumbai (Metro), Andhra Pradesh, Gujarat, Haryana, Karnataka, Kerala,

Madhya Pradesh, Maharashtra & Goa, Rajasthan, Punjab, UP (West) and UP (East).

Aircel has won many awards and recognitions. Voice and Data gave Aircel the highest rating for

overall customer satisfaction and network quality in 2006. Aircel emerged as the top mid-size utility

company in Businessworld’s ‘List of Best Mid-Size Companies’ in 2007. Additionally,Tele.net

recognised Aircel as the best regional operator in 2008.

With over 41million customers in the country, Aircel, the fastest growing telecom company in India, a

full-fledged national operator.

Aircel has won 3G spectrum across 13 circles and BWA spectrum in 8 circles in recently spectrum

auction .Aircel holds the highest amount of next generation spectrum amongst all telecom operators in

India.

Company Overview

Aircel Limited, a mobile operator, provides cellular services in India. It offers prepaid and postpaid

mobile plans; and value-added-services, including GPRS, WAP portal, and caller tunes. Aircel

Limited was formerly known as Srinivas Cellcom Limited and changed its name in October 1999. The

company was incorporated in 1994 and is based in Gurgaon, India. As of March 21, 2006, Aircel

Limited operates as a subsidiary of Maxis Communications Bhd.

Aircel

This article is about the telecom company. For the comics publisher, see Aircel Comics.

Aircel Limited

Type Joint Venture

Industry Mobile telecommunications

Founded 1999

Headquarters Gurgaon

Key people Gurdeep Singh, COO

Products Mobile

Telecommunication operator

Parent Maxis Communications (74%)

Apollo Hospital (26%)

Website Aircel.com

Competitors

Aircel is the fifth largest carrier in

India. Its competitors are (in order

of customer totals):

Bharti Airtel

Reliance Communications

Vodafone Essar

Idea Cellular

Bharat Sanchar Nigam Limited

Tata Teleservices

Uninor

MTS India

Contents

1 3G & BWA

2 Aircel Business

Solutions

3 Sponsorships

4 Share holders

5 Social Presence

6 Awards &

Recognition

7 Competitors

8 References

9 External links

Aircel is a mobile phone service provider in India. It offers both prepaid and postpaid GSM cellular

phone coverage throughout India. Aircel is a joint venture between Maxis Communications of

Malaysia and Apollo Hospital Enterprise Ltd of India. UTSB has a 74% stake in Aircel and the

remaining 26% is with Apollo Hospitals. It is India’s fifth largest GSM mobile service provider with a

subscriber base of over 46.51 million, as of September 30, 2010. It has a market share of 9.65% among

the GSM operators in the country. As on date, Aircel is present in all 23 telecom circles (including

Andhra Pradesh, Assam, Bihar & Jharkhand, Chennai, Delhi & NCR, Gujarat, Haryana, Himachal

Pradesh, Jammu & Kashmir, Karnataka, Kerala, Kolkata, Madhya Pradesh, Mumbai, North East,

Orissa, Punjab, Rajasthan, Rest of Maharashtra & Goa, Rest of Tamil Nadu, Rest of West Bengal,

Uttar Pradesh East, Uttar Pradesh West) as per the company plans to become a pan-India operator by

2010.Aircel is undisputed market leader in Tamil Nadu,Chennai,Assam and North-East

Circles,especially in TN state it is undisputed market leader since its launch. Additionally, Aircel has

also obtained permission from Department of Telecommunications (DoT) to provide International

Long Distance (ILD) and National Long Distance (NLD) telephony services. It also has the largest

service in Tamil Nadu.

3G & BWA

Recently on 3G spectrum auction by Government of India, Aircel wins 13 circles out of 23 Circles in

par with Airtel and Reliance as large bidder. Aircel also wins BWA(broadband wireless access)

Spectrum in 8 Circles at auction. Aircel’s expenditure towards 3G and BWA comes to a total of

Rs9,936 crore. While it bid Rs6,498 crore for 3G spectrum, it would pay another Rs3,438 crore

towards BWA. Aircel wins 3G spectrums in A.P.,Karnataka,Tamil Nadu, Kolkatta, Kerala, Punjab,

U.P(E), WestBengal,Bihar,Orissa,Assam,NorthEast,Jammu&Kashmir. On outcome of auction Aircel

emerged as only operator to cover and provide 3G services in whole South India and whole North-East

and East part of India. In BWA auction, Aircel wins Tamil Nadu,A.P.,West

Bengal,Bihar,Assam,Orissa, North-East,Jammu & Kashmir. On outcome of auction Aircel emerged as

2nd largest winner

Aircel Business Solutions

Aircel Business Solutions (ABS), part of Aircel, is an ISO 9000 certified company. ABS is a

registered member of WiMAX forum – both in the Indian and International Chapters. ABS’ product

range includes enterprise solutions such as Multiprotocol Label Switching Virtual Private Networks

(MPLS VPNs), Voice over Internet Protocol (VoIP) and Managed Video Services on wireless

platform including WiMAX.

Sponsorships

Aircel is one of the sponsors of the Indian Premier League Cricket Team Chennai Super Kings, which

is captained by Mahendra Singh Dhoni. It is also the major sponsors for Chennai Open (the only ATP

tennis tournament in India), and Professional Golf Tour of India.

Share holders

Maxis, Aircel's majority stake holder at that time, raised RM11.2 billions (USD 3.36 billions)for its

shareholders(UTSB), making it the largest IPO in Malaysia and Southeast Asia.

Social Presence

Aircel placed an actual dinghy lifeboat to a downtown billboard. A rope with a sign reading, “In case

of emergency, cut rope”, held up the branded raft. July 15, 2009 the monsoon arrived with flooded

streets and so did Aircel customer service. The dinghy was cut down and pedestrians were safely

transported. What Aircel calls “Corporate Social Responsibility – A Solution”. The company was able

to generate positive publicity and show consumers that they care.

Beautification of Anna Flyover has been taken up Aircel for a period of three years, the contract has

been awarded by TNRIDC and executed by Chennai based outdoor advertising agency [Abra Media

Networks http://www.abramedia.in/]. This project boasts of first of its kind lighting solution for the

entire stretch of the bridge and many other landscapes to enhance the look of the whole bridge. As far

as the utility is concerned, they are building a dedicated toilet for the police guarding the Anna Flyover

and the US Embassy. Once this flyover is beautified, Aircel plans to maintain it for 3 years. Aircel tied

up with Tamil Nadu Public Works Department for beautification and maintaining of Gandhi

Mandpam,Guindy in opposite of Anna University

Awards & Recognition

Aircel has won many awards for its services. Aircel was honored at the World Brand Congress 2009

with three awards, Brand Leadership in Telecom, Marketing Campaign & Marketing Professional of

the Year. Aircel was honored by CMAI INFOCOM National Telecom Award 2009 for, ‘Excellence in

Marketing of New Telecom Service’. Aircel had been selected as the best regional operator in 2008 by

Tele.net. Aircel was rated as the top mid-size utility company in Business World’s ‘List of Best Mid-

Size Companies’ in 2007. Aircel got the highest rating for overall customer satisfaction and network

quality in 2006 by Voice and Data.

Aircel is famous for innovative Pocket Internet cards for Free GPRS service for

1day/3days/7days/30days. Aircel become first to introduce Online service to subscribe and manage

Dialer tunes. It is first in country to introduce SMS bank/Phone Book/Reminder/Talking SMS

Articles tagged with: Aircel

Aircel to Spend $500 Million on 3G Network Deployment

­India's aircel has announced that it plans to launch its 3G network in the first quarter of next year and

has planned a US$500 million investment in the network during its first year. The company also plans

to spend a similar amount on expanding its existing GSM network.

Nokia Siemens Networks Wins Indian Network Deployment Contract

­Nokia Siemens Networks has won a US$300 million contract from India's aircel to roll out, manage

radio and core network and services in three Indian states. aircel is expected to roll out services in

these three circles, Haryana, Punjab, and Rajasthan in April and, under a managed services contract,

Nokia Siemens Networks will operate the network in these three circles for four years.

Aircel Sells Tower Portfolio for US$1.8 Billion

­India's aircel is to sell its portfolio of 17,500 towers to GTL Infra for Rs 8400 Crores (US$1.84

billion). The transaction will make GTL Infra the World's largest independent tower company with a

portfolio of more than 32,500 towers across all 23 telecom circles after the completion of the deal.

Aircel Signs Tower Sharing Deal with BSNL.

Aircel Announces $5 Billion Investment Plan

India's aircel has announced plans to double its subscriber base and invest US$5 billion in its network

over the next three to five years. The firm, a majority owned subsidary of Malaysia's Maxis, will spend

at least US$1 billion during 2009 and expects to end the year with 32 million customers.

France Telecom Reported to be Seeking Indian Investment

France Telecom is reported to be in talks to take a stake in India's aircel for between US$1.4-$2

billion. The French company is said to be in talks with Malaysia's Maxis, which owns 74% of the

company to take the stake. In the meantime, Maxis shareholder, Saudi Telecom is looking to increase

its holding in the firm from 25% to 35%.

India's Aircel Reported to be in Talks to Buy Loop Mobile

India's aircel Cellular is reported to be in talks to buy Mumbai based Loop Mobile (formerly BPL

Mobile), which is owned by the Ruias of the Essar group. Both companies have been holding

discussions for around seven months now, two people familiar with the discussions told the Economic

Times.

Ten new connections in India by the time you've read this headline

The Indian set a new world record for organic monthly net additions in September with an uplift of

9.99m, beating its own previous best of 9.90m. This is equivalent to 3.9 new connections every second

in September. The total market reached 310.62m with a penetration rate of 27.5%, which should mean

that there is plenty of potential for further growth.

Idea Cellular Ltd

COMPANY PROFILE

The coming together of the Aditya Birla Group, the Tata Cellular & the Birla AT&T Communications

led to formation of a cellular network in 1995. Later the merger of Tata Cellular with Birla AT&T

Communications & further their acquisition of RPG Cellular laid the foundation of Birla Tata AT&T

Ltd. The erstwhile Birla Tata AT&T Ltd was rechristened as Idea Cellular ltd when they launched a

popular brand "idea" in 2002.Idea has its network spread in Maharashtra(excluding Mumbai), Goa,

Gujarat, Andhra Pradesh, Madhya Pradesh, Chattisgarh & Delhi. The company offers nonstop

connectivity over 1000 towns & 10,000 kilometres of highways in the country. Idea has a chain of

over 48,000 retailers & dealers & 350 direct customer service outlets across the country. The

company had a subscriber base of 2,426,706 in 2003-04.

Idea offers popular mobile services like roaming services, call management services. Its value-added

services include Group & Global SMS facilities, M-Commerce, General Packet Radio Service

(GPRS) & VoiceMail facilities. Idea has been a pioneer in launching "EDGE" based services through

which subscribers enjoy movie previews, web-infotainment, high speed video downloads, java game

downloads on their mobile phones. With the introduction of EDGE, Idea has taken a major step

towards 3G networks. The technology provides data services faster than the popular GPRS

technology & importantly it provides them at a lower cost. Besides these Idea also provides the

normal prepaid & postpaid plans.

Idea Cellular started its operations in 1995 and is under the Aditya Birla Group, which holds 98.3%

stake in the company. The Company Idea Cellular Limited is one of the telephony wireless companies

that functions in many states in India. The Company Idea Cellular is the leading mobile services GSM

operator in the country. The Company Idea Cellular Limited is the only cellular operator in India to

launch EDGE and GPRS. The chairman of the company is Mr. Kumar Mangalam Birla and the

managing director is Mr. Sanjeev Aga. Idea Cellular Limited has the license to provide services in 11

telecom circles in the country. The telecom circles where the Company Idea Cellular has operations

are Goa, Maharashtra, Andhra- Pradesh, Chattisgarh, Kerala, Haryana, Uttaranchal, Gujarat, Delhi,

UP- West, and Madhya Pradesh. The company's footprint at present covers around 45% of the

population of India and more than 50% of the telecom market.

PRODUCTS PORTFOLIO

IDEA Cellular is a leading GSM mobile services operator in India with over 62 million subscribers,

under brand IDEA. From basic voice & Short Message Service (SMS) services to high-end value

added & GPRS services such as Blackberry, Datacard, Mobile TV, Games etc - IDEA is seen as an

innovative, customer focused brand. IDEA offers affordable and world-class mobile services to varied

segments of mobile users. Be it high end users, or low-end, price sensitive consumers - IDEA's tariff

plans are designed to suit every pocket.

Idea launched NetSetter Data Cards and Blackberry solutions to cater to its data-savy consumer

segments. NetSetter is a GPRS/EDGE compatible USB data modem to access Internet, usable with

both desktops and laptops with SMS facility. The Blackberry solution brings together smart phones,

software and services to provide customers with easy wireless access to email, phone, calendar, web

and multimedia applications, as well as of other mobile business and lifestyle applications.

MARKETING STRATEGIES AND SALES

With a vision of delighting its customers while meeting their individual communication needs

anytime, anywhere, IDEA offers seamless coverage to roaming customers traveling to any part of the

country, as well as to international traveling customers across over 200 countries. IDEA Cellular has

partnership with over 400 operators to ensure that customers are always connected while on the move,

within the country or other parts of the world.

Our aim, through media buying and planning, is to create year round impact. With the objective of

Strengthening our brand, we work with strategic communication partners on campaigns like

sponsorship of the Idea International Indian Film Academy awards and the television programs “Idea

Rocks India”, “Idea Star Singer” and “Idea Andhra Idol”. We seek engagement with subscribers on a

variety of levels, from major celebrity fashion shows to small local events timed to coincide with new

product offerings.

CLIENT AND CUSTOMER SATISFACTION

Since August 2003, we have commissioned a Brand Track Index Study to evaluate the health of our

brand. The Brand Track Index Study is a monthly study conducted by TNS, a marketing consultant

engaged by us to evaluate our brand using face-to-face interviews on a random sample of mobile users

a well as those intending to purchase mobiles within the next three months. According to the study our

brand is perceived as “reliable/trustworthy” and one that “offers cheaper and good promotional

offers”. We have improved our rating in the Brand Track Index calculated by the study in the past year

reflecting, we believe, the growing strength of our brand.

AFTER-SALES SCENARIO

All our key initiatives are subjected to a rigorous testing and launch process to ensure accountability

for all advertising spend and improve the chances of success of a new product. This process is

followed up with extensive briefing of call center agents and sales personnel and real-time tracking of

the impact of the communication and feedback from subscribers.

HUMAN RESOURCE MANAGEMENT

Idea Cellular continuously invests in fostering people development, identifying and grooming

management talent, and has a culture of harnessing employees' potential to the maximum.

The Company through its participative work environment, skill development activities, and by

championing the values of commitment, integrity, passion, seamlessness and speed, promotes strong

bonding with its employees. During the year, it has again undertaken sharing of value creation by

granting another tranche of employee stock options to the eligible employees. The findings of

Organisation Health Study (OHS) have been analysed, which are very encouraging, and concern areas

are being suitably addressed. The employee strength on rolls stood at 6,481 as on March 31, 2009.

SUPPLY CHAIN MANAGEMENT

The Company's business is dependent on key vendors to supply critical network equipment and

services. Besides, its ability to provide quality mobile network and expanding its area of operations

and the subscriber base is also dependent on the spectrum allocation by the government. The Company

believes in partnering with vendors who are of international repute, and with whom it builds long term

relationships.

The group operates in 25 countries, and is anchored by over 100,000 employees belonging to 25

nationalities. The Group has been adjudged 'The Best Employer in India and among the Top 20 in

Asia' by the Hewitt-Economic Times and Wall Street Journal Study 2007. The Group has also made

successful forays into financial services, telecom, software, BPO and retail sectors. Today, the Group

is India's most diversified business house.

ABOUT FINANCE

Idea had an excellent year, with consolidated revenue crossing the Rs. 100 billion mark. Its revenue at

Rs. 101.54 billion, is up by 51% over that of the previous year. Even after the exclusion of revenue

from the new service areas of Mumbai and Bihar, and from the joint ventures Spice and Indus, the

annual revenue growth from older service areas is around 46%. This growth, coming on the back of

the earlier year's revenue growth of 54%, marks IDEA as India's fastest growing major telco over the

last two years. The net profit, for the year, stood at Rs. 8,816 million.

RESEARCH AND DEVELOPMENT

Idea along with International Finance Corporation (IFC), a member of The World Bank Group, has

taken an initiative for designing and implementing a "Pocket PCO" program in India.

Idea Pocket PCO is easy to use mobile phone that comes with a special Idea SIM having PCO

software embedded in it. The device can be used by the individual as a mobile phone for personal use

and as a PCO for business opportunity. The project will help rural micro-entrepreneurs to create

pocket Public Call Offices (PCOs) in India's under-served areas. The focus is to provide access to

telephony services in rural communities, while creating income generating opportunities. Your

company is committed to help people to improve their lives by providing high quality access to

telecommunications.

I.T. INFRASTRUCTURE

The Company has appropriate internal control systems for business processes, covering operations,

financial reporting and compliance with applicable laws and regulations. Clearly defined roles and

responsibilities for all managerial positions drive adherence of defined processes. Operating

parameters are monitored and controlled. The telecom sector is characterized by change in technology.

Competition from new technologies is an inherent threat. While the planned 2100 MHz spectrum

auction for 3G services will lead to additional cash outflow, it will also open new revenue streams.

The Company's strong balance sheet and market standing, positions it to participate effectively in such

auction.

PLANS FOR THE FUTURE

The competitive intensity in the telecom sector has accelerated during the last three quarters, and is

likely to increase with new launches creating further overcapacity, placing pressure on margins.

However, it is anticipated that market forces will eventually work the overcapacity out of the sector.

The Company focuses on strengthening its position in 900 MHz service areas, by exploiting its

advantages of scale and spectrum, while in the newer service areas it follows a disciplined and

measured approach. The Company is fully equipped for this phase of intense competition, and expects

to emerge competitively stronger. The telecom sector will continue to demonstrate attractive long term

opportunities for strong operators.