Idea Finel Project

CHAPTER-1
INTRODUCTION
1.1 GENERAL INTRODUCTION
Technological changes in telecommunications and computers have radically changed
the business scenario In turn, the new demands of business have spurred many telecom-
based technological innovations. In order to exploit these innovations for competing in global
markets the business community the world over has been putting pressure on governments
to revise the policy regulation, and structure of the telecom sector. Several countries across
[KRUPANIDHI BUSINESS SCHOOL] [Page 1]

the world have responded by restructuring the state-controlled telecom service provider,
increasing private participation, and deregulating service provision. The emergent
organizations have attempted to be more responsive to the business needs and have
evolved mechanisms to remain competitive even under tremendous pressures !ehara "##$%
&lynn "##'% (im,(im, and )oon "##'% *aidlaw "##+
,ver the past several years, developing countries have also recognized the important
role a responsive, business-oriented, and technologically advanced telecom sector plays in
the growth of the economy. -any developing countries now see the constraints of a state
monopoly in telecom as standing in the way of a response to the twin challenges of spurring
internal growth and competing in an increasingly global economy .onaldson "##+%
/ussawala "##'% -elody "#01% /ain "##2% 3isciotta "##+% Tyler and 4ednarizyk "##5%
Scherer "##+% 6ellenius "##$% 6ellenius "##+7. The process of introduction of new
organizational forms and structures 8esearch assistance provided by -s Trupti 3atel is
gratefully acknowledged.
In today9s market customer service and satisfaction has become very important without
which the companies are finding it difficult to complete in the market place.
In early days since people were not keen on service aspects, it was easy for the company to
:ust sell and ;uite. 4ut in today9s market more than sales servicing has been given prime
importance as the life of the product depends on it. This infects helps in rising the attitude
and interest of the customers to buy more and more companies product.
<nd appropriate policy is complex. In a developing country, resource shortages, lack
of technology and trained personnel, and political expediency make the task even more
difficult.
3ast experience of reform across many countries suggests that the fundamental issue
that must be addressed in telecom reform is effective separation of the basic functions of
policy making, operational management, and regulation IT! 8eport "#0#7. The second level
of consideration is access to capital and human resources. The third level of concern is the
introduction of competition for efficiency. =ompetition is perhaps more important than right
ownership, if ever there was anything like it, in bringing about efficiency.

OBJECTIVES OF THE STUDY:
To analyze the customer response towards Idea =ellular *td. in 4angalore city.
To evaluate the 4rand Image opinion of the customer.
To know about the customer acceptance of the product.
To identify customer problem of Idea =ellular *td.
To know how far customer satisfied with company9s product and services.
To know customer preferences and disking regarding of bills.
To know customer perception towards on Idea =ellular *td.
The research was undertaken to gather information from the customers overall
feedback towards Idea =ellular *td. in 4angalore city. The study was restricted only within
4angalore city.
1.2 INDUSTRY PROFILE:
The Indian telecommunications >etwork with ??m telephone connections is the fifth
largest in the world and is the second largest among the emerging economies of <sia. Today
it is the fastest growing market in the world and represents uni;ue opportunities for !(
companies in the stagnant global scenario. Tele-density, which was languishing at '@ in
"###, has shown an impressive :ump to ?@ in '$$5 and is set to increase to '$@ in the next
five years beating the &ovt target by three years. <ccordingly, India re;uires incremental
investments of !S. "$-"2 bln for the next five years.
3rivate operators have made mobile telephony the fastest growing over "1+@ p.a.7 in
India. 6ith more than 55 million users both =.-< and &S-7, wireless is the principal
growth engine of the Indian telecom industry. &iven the current growth trends, cellular
connections in India will surpass fixed line by late '$$+Aearly '$$2.
-obile industries today consist of mainly six players, namely Bodafone, Tata Indicom,
8eliance Info =om, <irtel, Spice telecom 4S>* where 4S>* is the names first mobile service
providers which has introduced its service on 5$
th
march '$$1, 0+ millions subscribers using
the services across the nation.

Spice has the first privet sector organization to make strategic lift in to
telecommunication arena in "##2 as it launched India9s first service network in (olkata.
<irtel is emerging as the leading mobile service providers in the nation. It presence is
more than '5 telecom circles across the nation C in (arnataka more then '$ lakh subscribes
a. ORIGIN AND DEVELOPMENT OF THE TELECOM INDUSTRY
The telecom network in India is the fifth largest network in the world meeting up with
global standards. 3resently, the Indian telecom industry is currently slated to an estimated
contribution of nearly "@ to India9s &.3.
Intr!"#t$n:
The Indian Telecommunications network with ""$.$" million connections is the fifth
largest in the world and the second largest among the emerging economies of <sia. Today, it
is the fastest growing market in the world and represents uni;ue opportunities for !.S.
companies in the stagnant global scenario. The total subscriber base, which has grown by
+$@ in '$$2, is expected to reach '2$ million in '$$?. <ccording to 4roadband 3olicy '$$+,
&overnment of India aims at # million broadband connections and "0 million internet
connections by '$$?. The wireless subscriber base has :umped from 55.1# million in '$$+ to
1'.2? million in D)'$$+- '$$2. In the last 5 years, two out of every three new telephone
subscribers were wireless subscribers. =onse;uently, wireless now accounts for 2+.1@ of the
total telephone subscriber base, as compared to only +$@ in '$$5. 6ireless subscriber
growth is expected to bypass '.2 million new subscribers per month by '$$?. The wireless
technologies currently in use are &lobal System for -obile =ommunications &S-7 and
=ode .ivision -ultiple <ccess =.-<7. There are primarily # &S- and 2 =.-< operators
providing mobile services in "# telecom circles and + metro cities, covering '$$$ towns
across the country.
Ta%&'-1.1
E(&"t$n ) t*' $n!"+tr,-I-.rtant M$&'+tn'+

Y'ar H$+tr, ) In!$an T'&'#--"n$#at$n+
"02" Dirst operational land lines were laid by the government near =alcutta seat of
4ritish power7
"00" Telephone service introduced in India
"005 -erger with the postal system
"#'5 Dormation of Indian 8adio Telegraph =ompany I8T7
"#5' -erger of ET= and I8T into the Indian 8adio and =able =ommunication
=ompany I8==7
"#+? >ationalization of all foreign telecommunication companies to form the 3osts,
Telephone and Telegraph 3TT7, a monopoly run by the governmentFs -inistry
of =ommunications
"#02 .epartment of Telecommunications .,T7 established, an exclusive provider
of domestic and long-distance service that would be its own regulator
separate from the postal system7
"#01 =onversion of .,T into two wholly government-owned companiesG the
Bidesh Sanchar >igam *imited BS>*7 for international telecommunications
and -ahanagar Telephone >igam *imited -T>*7 for service in metropolitan
areas.
"##? Telecom 8egulatory <uthority of India created.
"### =ellular Services are launched in India. >ew >ational Telecom 3olicy is
adopted
'$$$ .oT becomes a corporation, 4S>*
Ma/r P&a,'r+:
There are three types of players in telecom servicesG
H -State owned companies 4S>* and -T>*7
H -3rivate Indian owned companies 8eliance Info comm., Tata Teleservices,7
H -Doreign invested companies Iutchison-Essar, 4harti Tele-Bentures, Escotel, Idea =ellular,
43* -obile, Spice =ommunications7

BSNL:
,n ,ctober ", '$$$ the .epartment of Telecom ,perations, &overnment of India
became a corporation and was renamed 4harat Sanchar >igam *imited 4S>*7. 4S>* is
now India9s leading telecommunications company and the largest public sector undertaking.
It has a network of over +2 million lines covering 2$$$ towns with over 52 million telephone
connections. The state-controlled 4S>* operates basic, cellular &S- and =.-<7 mobile,
Internet and long distance services throughout India except .elhi and -umbai7. 4S>* will
be expanding the network in line with the Tenth Dive-)ear 3lan "##'-#?7. The aim is to
provide a telephone density of #.# per hundred by -arch '$$?. 4S>*, which became the
third operator of &S- mobile services in most circles, is now planning to overtake 4harti to
become the largest &S- operator in the country. 4S>* is also the largest operator in the
Internet market, with a share of '" per cent of the entire subscriber base.
BHARTI:
Established in "#02, 4harti has been a pioneering force in the telecom sector with
many firsts and innovations to its credit, ranging from being the first mobile service
in .elhi, first private basic telephone service provider in the country, first Indian company to
provide comprehensive telecom services outside India in Seychelles and first private sector
service provider to launch >ational *ong .istance Services in India. 4harti Tele-Bentures
*imited was incorporated on /uly ?, "##2 for promoting investments in telecommunications
services. Its subsidiaries operate telecom services across India. 4harti9s operations are
broadly handled by two companiesG the -obility group, which handles the mobile services in
"1 circles out of a total '5 circles across the country% and the Infotel group, which handles the
>*., I*., fixed line, broadband, data, and satellite-based services. Together they have so far
deployed around '5,$$$ km of optical fiber cables across the country, coupled with
approximately ",2$$ nodes, and presence in around '$$ locations. The group has a total
customer base of 1.+2 million, of which 2.01 million are mobile and 200,$$$ fixed line
customers, as of /anuary 5", '$$+. In mobile, 4harti9s footprint extends across "2 circles.
4harti Tele-BenturesF strategic ob:ective is Jto capitalize on the growth opportunities the
company believes are available in the Indian telecommunications market and consolidate its
position to be the leading integrated telecommunications services provider in key markets in
India, with a focus on providing mobile servicesK.

MTNL:
-T>* was set up on "st <pril "#01 by the &overnment of India to upgrade the ;uality
of telecom services, expand the telecom network, introduce new services and to raise
revenue for telecom development needs of India9s key metros L .elhi, the political capital,
and -umbai, the business capital. In the past "? years, the company has taken rapid strides
to emerge as India9s leading and one of <sia9s largest telecom operating companies. The
company has also been in the forefront of technology induction by converting "$$@ of its
telephone exchange network into the state-of-the-art digital mode. The &ovt. of India
currently holds 21.'2@ stake in the company. In the year '$$5-$+, the companyFs focus
would be not only consolidating the gains but also to focus on new areas of enterprise such
as :oint ventures for pro:ects outside India, entering into national long distance operation,
widening the cellular and =.-<-based 6** customer base, setting up internet and allied
services on an all India basis. -T>* has over 2 million subscribers and 5'#,5?+ mobile
subscribers. 6hile the market for fixed wireline phones is stagnating, -T>* faces intense
competition from the private playersM4harti, Iutchison and Idea =ellular, 8eliance
InfocommMin mobile services. -T>* recorded sales of 8s. 1$.' billion N".50 billion7 in the
year '$$'-$5, a decline of 2.0 per cent over the previous year9s annual turnover of 8s. 15.#'
billion.
RELIANCE INFOCOMM:
8eliance is a N"1 billion integrated oil exploration to refinery to power and textiles
conglomerate SourceG httpGAAwww.ril.comAnewsitem'.html7. It is also an integrated telecom
service provider with licenses for mobile, fixed, domestic long distance and international
services. 8eliance Info com offers a complete range of telecom services, covering mobile
and fixed line telephony including broadband, national and international long distance
services, data services and a wide range of value added services and applications. 8eliance
India -obile, the first of Info comm.9s initiatives was launched on .ecember '0, '$$'. This
marked the beginning of 8elianceFs vision of ushering in a digital revolution in India by
becoming a ma:or catalyst in improving ;uality of life and changing the face of India. 8eliance
Info comm plans to extend its efforts beyond the traditional value chain to develop and deploy
telecom solutions for IndiaFs farmers, businesses, hospitals, government and public sector

organizations. !ntil recently, 8eliance was permitted to provide only Jlimited mobilityK
services through its basic services license. Iowever, it has now ac;uired a unified access
license for "0 circles that permits it to provide the full range of mobile services. It has rolled
out its =.-< mobile network and enrolled more than 1 million subscribers in one year to
become the country9s largest mobile operator. It now wants to increase its market share and
has recently launched pre-paid services. Iaving captured the voice market, it intends to
attack the broadband market.
TATA TELESERVICES:
Tata Teleservices is a part of the N"' billion Tata &roup, which has #5 companies, over
'$$,$$$ employees and more than '.5 million shareholders. Tata Teleservices provides basic
fixed line services7, using =.-< technology in six circlesG -aharashtra including -umbai7,
>ew .elhi, <ndhra 3radesh, Tamil >adu, &u:arat, and (arnataka. It has over 0$$,$$$
subscribers. It has now migrated to unified access licenses, by paying a 8s. 2.+2 billion
N"'$ million7 fee, which enables it to provide fully mobile services as well. The company is
also expanding its footprint, and has paid 8s. +."? billion N#$ million7 to .oT for "" new
licenses under the I!= interconnect usage charges7 regime. The new licenses, coupled with
the six circles in which it already operates, virtually gives the =.-< mobile operator a
national footprint that is almost on parwith 4S>* and 8eliance Info comm. The company
hopes to start off services in these "" new circles by <ugust '$$+. These circles include
4ihar, Iaryana, Iimachal 3radesh, (erala, (olkata, ,rissa, 3un:ab, 8a:asthan, !ttar
3radesh East7 C 6est and 6est 4engal.
VSNL:
,n <pril ", "#01, the Bidesh Sanchar >igam *imited BS>*7 - a wholly &overnment
owned corporation - was born as successor to ,=S. The company operates a network of
earth stations, switches, submarine cable systems, and value added service nodes to provide
a range of basic and value added services and has a dedicated work force of about '$$$
employees. BS>*Fs main gateway centers are located at -umbai, >ew .elhi, (olkata and
=hennai. The international telecommunication circuits are derived via Intelsat and Inmarsat
satellites and wide band submarine cable systems e.g. D*<&, SE<--E-6E-' and SE<--E-
6E-5. The companyFs <.8s are listed on the >ew )ork Stock Exchange and its shares are
listed on ma:or Stock Exchanges in India. The Indian &overnment owns approximately '1 per

cent e;uity, -As 3antone Dinevest *imited as investing vehicle of Tata &roup owns +2 per
cent e;uity and the overseas holding inclusive of DIIs, <.8s, Doreign 4anks7 is
approximately "5 per cent and the rest is owned by Indian institutions and the public. The
company provides international and Internet services as well as a host of value-added
services. Its revenues have declined from 8s. ?$.0# billion N".1' billion7 in '$$"-$' to 8s.
+0."' billion N"." billion7 in '$$'-$5, with voice revenues being the mainstay. To reverse the
falling revenue trend, BS>* has also started offering domestic long distance services and is
launching broadband services. Dor this, the company is investing in Tata Tel services and is
likely to ac;uire Tata 4roadband.
VODAFONE:
Iutch9s presence in India dates back to late "##', when they worked with local
partners to establish a company licensed to provide mobile telecommunications services in
-umbai. =ommercial operations began in >ovember "##2. 4etween '$$$ and -arch '$$+,
Iutch ac;uired further operator e;uity interests or operating licences. 6ith the completion of
the ac;uisition of 43* -obile =ellular *imited in /anuary '$$1, it now provides mobile
services in "1 of the '5 defined license areas across the country. Iutch India has benefited
from rapid and profitable growth in recent years. it had over "?.2 million customers by the
end of /une '$$1.
IDEA:
Indian regional operator I.E< =ellular *td. has a new ownership structure and grand
designs to become a national player, but in doing so is likely to become a thorn in the side of
8eliance =ommunications *td. I.E< operates in eight telecom Jcircles,K or regions, in
6estern India, and has received additional &S- licenses to expand its network into three
circles in Eastern India -- the first phase of a ma:or expansion plan that it intends to fund
through an I3,, according to parent company <ditya 4irla &roup
Ta%&'-1.2

COMPANY MAR0ET SHARES
C-.an, M$&&$n S"%+
1N( 22234
5 +*ar'
4S>* +$.5 20.0
8eliance 1." 0.#
4harti 2.? 0.5
-T>* +.# ?.'
Iutchison '.# +.'
Idea =ellular '." 5.$
43* ".+ '."
Tata Teleservices ".5 ".#
Spice ".$ ".+
Escotel $.0 "."
Dascel $.0 "."
<ircel $.# ".+
Iexacom $.' $.5
Shyam Telelink $." $.'
F$6-1.1

Indian telecommunications today benefits from among the most enlightened regulation
in the region, and arguably in the world. The sector, sometimes considered the Jposter-boy
for economic reforms,K has been among the chief beneficiaries of the post-"##" liberalization.
!nlike electricity, for example, where reforms have been stalled, telecommunications has
generally been seen as removed from Jmass concerns,K and thus less sub:ect to electoral
calculations. -arket oriented reforms have also been facilitated by lobbying from India9s
booming technology sector, whose continued success of course depends on the ;uality of
communications infrastructure.
.espite several hiccups along the way, the Telecom 8egulatory <uthority of India
T8<I7, the independent regulator, has earned a reputation for transparency and
competence. 6ith the recent resolution of a ma:or dispute between cellular and fixed
operators see below7, Indian telecommunications, already among the most competitive
markets in the world, appears set to continue growing rapidly. 6hile telecom liberalization is
usually associated with the post-"##" era, the seeds of reform were actually planted in the
"#0$s. <t that time, 8a:iv &andhi proclaimed his intention of Jleading India into the '"
st
century,K and carved the .epartment of Telecommunications .,T7 out of the .epartment of

3osts and Telegraph. Dor a time he also even considered corporatizing the .,T, before
succumbing to union pressure. In a compromise, &andhi created two .,T-owned
corporationsG -ahanagar Telephone >igam *imited -T>*7, to serve .elhi and 4ombay, and
Bidesh Sanchar >igam *imited BS>*7, to operate international telecom services. Ie also
introduced private capital into the manufacturing of telecommunications e;uipment, which
had previously been a .,T monopoly.
These and other reforms were limited by the unstable coalition politics of the late
"#0$s. It was not until the early "##$s, when the political situation stabilized, and with the
general momentum for economic reforms, that telecommunications liberalization really took
off. In "##+, the government released its >ational Telecommunications 3olicy >T3-#+7,
which allowed private fixed operators to take part in the Indian market for the first time
cellular operators had been allowed into the four largest metropolitan centers in "##'7.
!nder the government9s new policy, India was divided into '$ circles roughly corresponding
to state boundaries, each of which would contain two fixed operators including the
incumbent7, and two mobile operators.
,ver the years, T8<I has earned a growing reputation for independence,
transparency and an increasing level of competence. Early on, however, the regulator was
beleaguered on all fronts. It had to contend with political interference, the incumbent9s many
challenges to its authority, and accusations of ineptitude by private players. Throughout the
late "##$s, T8<I9s authority was steadily whittled away in a number of cases, when the
courts repeatedly held that regulatory power lay with the central government. It was not until
'$$$, with the passing of the T8<I <mendment <ct, that the regulatory body really came into
its own. =oming :ust a year after >T3-##, the act marks something of a watershed moment in
the history of India telecom liberalization. It set the stage for several key events that have
enabled the vigorous competition witnessed today. Some of these events includeG
The corporatization of the .,T and the creation of a new state-owned telecom company,
4harat Sanchar >igam *td 4S>*7, in '$$$%
The opening up of India9s internal long-distance market in '$$$, and the subse;uent drop
in long-distance rates as part of T8<I9s tariff rebalancing exercise%
The termination of BS>*9s monopoly over international traffic in '$$', and the partial
privatization of the company that same year, with the Tata group assuming a '2@ stake
and management control%

The gradual easing of the original duopoly licensing policy, allowing a greater number of
operators in each circle%
The legalization, in '$$', of I3 telephony a move that many believe was held up due to
lobbying by BS>*, which feared the conse;uences on its international monopoly7%
The introduction in '$$5 of a =alling 3arty 3ays =337 system for cell phones, despite
considerable opposition including litigation7 by fixed operators%
<nd, more generally, the commencement of more stringent interconnection regulation by
T8<I, which has moved from an interoperate Jnegotiations-basedK approach often used
by the stronger operator to negotiate ad infinitum7 to a more rules-based approach.
<ll of these events have created an impressive forward-momentum in Indian
telecommunications, resulting in a vigorously competitive and fast-growing sector. India has
also suffered from its fair share of regulatory hiccups. -any operators mobile players in
particular7 still complain about the difficulties of gaining access to the incumbent9s 4S>*7
network, and the government9s insistence on capping D.I in the telecom sector to +#@ a
move made in the name of national security7 limits capital availability and thus network
rollout. In addition, IS3s, who were allowed into the market under a liberal licensing regime in
"##0, continue to haemorrhage money, and have been pleading with the government for
various forms of relief, including the provision of unmetered phone numbers for Internet
access. .espite initially impressive results, the growth of Internet in the country has recently
stalled, with only 0 million users. 4roadband penetration, too, remains tiny.
4ut perhaps the biggest L and, until recently, most intractable L regulatory problem
has been the drawn-out battle over Jlimited mobilityK telephony. This imbroglio began in "###,
when -T>* sought permission from T8<I to provide =.-<-based 6** services with Jlimited
mobility.K &S- cellular operators were soon up in arms, arguing that Jlimited mobilityK was
simply a backdoor entry into their business. -oreover, fixed operators had paid lower license
and spectrum fees than cellular one9s% were not re;uired to pay access charges for cell-to-
fixed calls unlike their cellular counterparts7% and, amidst accusations of cross-subsidization,
were charging considerably lower rates than the cellular operators.
The resulting conflict dragged on in the courts and in the political arena for years.
Dixed operators including new entrants 8eliance and Tata Teleservices claimed that they
were being prevented from providing a cheap service that would drive penetration and be of
benefit to the Jcommon manK% cellular players bitterly opposed what they perceived as

une;ual regulatory treatment for two kinds of operators who were in fact offering the same
service. The real victim, of course, was the Indian telecommunications market, which suffered
from investor perceptions of regulatory confusion and operator in-fighting. In late '$$', for
example, thousands of mobile users in >ew .elhi were for a time cut off from the fixed-line
network when -T>* shut down interconnection for cellular companies. -T>* later attributed
the incident to a Jtechnical snag.K7
%. GRO7TH AND PRESENT STATUS OF THE TELECOM INDUSTRY
In '$$2-'$$1, the telecom industry witnessed a growth of '"@ with a total revenue of
8s. 01,?'$ crores, and the total investment rising to 8s. ',$$,11$ crores. It is pro:ected that
the telecom industry will be en:oying over "2$@ growth in the next +-1 years. The growth
also re;uires a huge investment by the players in the sector. 4harti <irtel is planning to invest
about N0 billion by the year '$"$.
*iberalization policy and some socio-economic factors are mainly responsible for the
immense growth in the sales volumes. The lifestyle of the people has changed. They need to
be connected to the other people all the time. 6ith the lowering down of the tariffs the
affordability of the mobile phones has increased. The finance sector has also come up with
loans for handsets on $@ interest. -obile services providers are also expanding their
coverage area by installing more and more antennas and other e;uipments.
The telecom sector in the country has already adopted the latest technological
advancements to cater to the demands of the growing market. Telecom Expo India,
=onvergence India, B<S India and I3TB India being organized year to year are all efforts in
this direction.
4udget '$$? has brought disappointment to the telecom sector. -obile service
providers have been asked to cut down their roaming rentals as well as their long distance
and international call tariffs. This has led to discontent on the part of the service providers.
Iowever, Telecom 8egulatory <uthority of India T8<I7 is of the opinion that this will lead to
increased use of roaming, which will ultimately lead to more revenue generation. -oreover,
with cheaper handsets and lesser tariffs, it is expected that by the year '$"$ there will be
over 2$$ million subscribers in the Indian telecom market.

<lso, the telecom industry this year will be focusing more on rural areas to connect
them with the urban areas so that the farmers and the small-scale industries can have faster
access to information related to weather and market conditions.
)es, that9s true. Indian telecommunication Industry is one of the fastest growing
telecom market in the world. T*' -%$&' +'#tr *a+ 6r8n )r- ar"n! 12 -$&&$n
+"%+#r$%'r+ $n 2222 t r'a#* 192 -$&&$n %, 'ar&, 222: r'6$+t'r$n6 an a('ra6' 6r8t* )
('r ;25 ,,. The two ma:or reasons that have fuelled this growth are low tariffs coupled
with falling .
Ta%&t-1.3
GSM an! CDMA +"%+#r$.t$n n"-%'r+:
Y'ar
GSM S"%+#r$%'r+
1-$&&$n+4
GSM Ann"a&
6r8t*
CDMA S"%+#r$%'r+
1-$&&$n+4
CDMA
Ann"a&
6r8t*
2222 3.1 ;<5 - -
2221 9.29 :=5 - -
2222 12.9 ;15 2.> -
2223 22.2 1125 =.< :225
222< 3:.< :25 12.; :25
2229 9>.9 9:5 1;.1 :95
222= 129.< >25 <<.2 1315
222: 1>2.2 :15 >9.2 ;25
The -inistry of =ommunications and Information Technology -=IT7 is has very
aggressive plans to increase the pace of growth, targeting '2$ million telephone subscribers
by end-'$$? and 2$$ million by '$"$. -ost of the expansion in subscribers is set to occur in
rural India. India9s rural telephone density has been languishing at around ".#@%
So, if ?$@ of total population is rural, the scope for growth in this Industry is unprecedented.

#. FUTURE OF THE INDUSTRY
6ednesday, >ovember $?, '$$?G Traditional telecom carriers can no longer rely on
conventional competitive tactics such as price cuts, promotions and basic product bundling to
maintain their edge in the consumer segment, warned &artner. The research firm also said
that non-traditional telecom players like <pple, &oogle and >okia, which have a strong
understanding of consumers, are adopting new business models that are forcing carriers to
reassess their approach and service delivery. Daced with this competition, traditional telecom
carriers will attempt to transform themselves by primarily exploiting content, but &artner
predicts that more than 0$ per cent will fail.
OThe players that will be amongst the successful '$ per cent will be the ones that
provide a consumer-centric experience, for example, through interactive TB, where users will
be able to chat online while watching their favourite TB programmes,O said -artin &utberlet,
vice president, &artner.
,wning infrastructure initially gives telecom carriers some competitive edge but this is
mitigated by non-traditional competitors that don9t own a network but bundle their services
attractively. O<s demonstrated by <pple and &oogle, three new attributes are coming into play
and driving change in the marketplace that the traditional telecom players must embrace to
become successful content enablers, which create andAor deliver content. They are trust,
usability and an exciting customer experience,O said &utberlet.
In this changing landscape, the winners will be those companies that understand
consumersF needs, focussing on usability and actually giving control back to the users. The
losers will be the ones that focus on overly technical product differentiation that the ma:ority
of consumers will not understand and therefore not use.
&artner predicts that by '$"', half of the '$ largest carriers will establish new lines of
business outside telecom, such as media entertainment, advertising and managed services,
but more than half will fail. Durther, leading carriers in developed markets such as Bodafone
and 4T will be able to derive at least "2 per cent of revenue from such non-traditional
sources.
OTo uncover ad:acent markets, carriers must leverage their uni;ue assets, in areas
such as billing, secure authentication and ;uality of service, and develop multiple
partnerships to add creative talent to existing operational expertise,O added &artner.

<ccording to &artner, three business models are emerging that will help carriers
remain competitive through '$"'. =ontent Innovator is entering the media market% Embracing
this model, content innovators produce and own their content and will use exclusive content
to differentiate themselves% <ggregator -- the aggregator model will not involve the creation of
content, rather the sourcing and packaging of it. 4it 3ipe =arrier, the third model, represents
a stable business model based on connectivity as a utility but with both lower revenue and
lower margins than today.
8ather than emphasising content and services, the bit pipe model is driven by
operational excellence. In order to maintain profits amidst declining revenues, carriers that
adopt a bit pipe approach are expected to reduce their core operational staff by at least '$
per cent by '$"', driven by internet protocol I37 technology, infrastructure consolidation,
process automation, operational outsourcing and cutthroat competition. OThe risk of this
model is making the wrong network investment decision,O &utberlet said.
Ie added, O6e envisage that carriers will use any combination of the three business
models. < company that has successfully deployed this approach is Telefonica, which was
once a content innovator and following its sale of Endemol became an aggregator and a bit
pipe carrier.O
OThe telecom industry in '$"' will be very different from the one we know today.
.eveloping strong partnership skills, focussing on customer user groups, embracing Internet
services and starting to talk the language of 6eb '.$ will enable the carriers to thrive well into
the future,O concluded &utberlet.
B, 2212? *a&) ) t*' 22 &ar6'+t #arr$'r+ 8$&& '+ta%&$+* n'8 &$n'+ ) %"+$n'++
"t+$!' t'&'#-? +"#* a+ -'!$a 'nt'rta$n-'nt? a!('rt$+$n6 an! -ana6'! +'r($#'+? %"t
-r' t*an *a&) 8$&& )a$&? +a,+ Gartn'r.

CHAPTER-2
PROFILE OF THE ORGANI@ATION

2.1 ORIGIN OF THE IDEA CELLULAR LTD.
I!'a C'&&"&ar is a wireless telephony company operating in various states in India. It
initially started on -arch "+,"##2 and is one of the leading &S- mobile services operators.
Iead;uartered in -umbai, it has licenses to operate in all '' service areas across the
country, though commercial operations are currently in "1 services areas. 6ith a customer
base of over +5.$' million subscribers, the operations cover the states of -aharashtra, &oa,
&u:arat, 8a:asthan, .elhi, Iaryana, Iimachal 3radesh, !ttaranchal, !ttar 3radesh, -adhya
3radesh, =hhattisgarh, <ndhra 3radesh, (erala, and 4ihar. ,rissa, and Tamil >adu will
become operational during '$$0-$#, and Idea will then cover approximately #$ per cent of
the country9s telephony potential.
I.E< en:oys a market leadership position in many of its operational areas. It offers
&38S on all its operating networks for all categories of subscribers, and was the first
company in India to commercially launch the next generation E.&E technology in .elhi in
'$$5. <s a pioneer in technology deployment, it has been in the forefront through the
adoption of bio fuels to power its base stations, and by employing satellite connectivity to
reach inaccessible rural areas in -adhya 3radesh.
I.E< has been a leader in the introduction of value added services, and there are
several firsts to its credit, including a voice portal PSay Idea9, Idea TB, voice chat, instant
messenger, and many more. Tariff plans have been customer friendly, catering to the uni;ue
needs of different customer segments, where P6omen9s =ard9 caters to the special needs of
the woman on the move, and P)outh =ard9 covers the emerging youth segment.
I.E< has won numerous awards and is the only Indian &S- operator to win the
prestigious &S- <ssociation <ward consecutively in the best mobile technology category for

the P4est 4illing and =ustomer =are Solution9 both in '$$1 and in '$$? in the face of
international competition.
In '$$? I.E< was listed on the >ational Stock Exchange >SE7 and the 4ombay
Stock Exchange 4SE7.
2.2GRO7TH AND DEVELOPMENT OF THE IDEA CELLULAR LTD.
6e were incorporated as 4irla =ommunications *imited on -arch "+, "##2 and
granted a certificate of commencement of business on <ugust "", "##2. ,ur registered office
was in -umbai, -aharashtra. ,ur name was changed to 4irla <TCT =ommunications *imited
on -ay 5$, "##1 following the execution of a :oint venture agreement dated .ecember 2,
"##2 between <TCT =orporation and &rasim Industries *imited pursuant to which the <ditya
4irla &roup held 2"@ of our E;uity Share capital and <6S &roup held +#@ of our E;uity
Share capital. ,ur registered office was transferred from Industry Iouse, "st Dloor, "2#
=hurch &ate 8eclamation, -umbai +$$ $'$, -aharashtra to Suman Tower, 3lot >o. "0,
Sector "", &andhinagar 50'$"" &u:arat on ,ctober '', "##1. 6ith effect from /anuary ",
'$$" following our merger with Tata =ellular *imited the :oint venture agreement between
<TCT =orporation and &rasim Industries *imited dated .ecember 2, "##2 was replaced by
a shareholders9 agreement dated .ecember "2, '$$$ entered into between &rasim
Industries *imited on behalf of the <ditya 4irla &roup, Tata Industries *imited on behalf of
the Tata &roup and <TCT 6ireless Services Inc. on behalf of the <6S &roup following which
our name was changed to 4irla Tata <TCT *imited on >ovember 1, '$$". =onse;uent to the
introduction of the JIdeaK brand, our name was changed to Idea =ellular *imited on -ay ",
'$$'.
The <6S &roup exited from the =ompany on September '0, '$$2 by selling
5?",?0$,?+$ E;uity Shares of the =ompany, which constituted 2$@ of the holding of <TCT
=ellular 3rivate *imited in our e;uity share capital, to <4>* and by transferring the remaining
5?",?0$,?2$ E;uity Shares to Tata Industries *imited. The Tata &roup ceased to be a
shareholder of the =ompany on /une '$, '$$1 when Tata Industries *imited and <pex
Investments -auritius7 Iolding 3rivate *imited formerly known as <TCT =ellular 3rivate
*imited7 sold all their shares in the =ompany to the <ditya 4irla &roup.

,n ,ctober '1, '$$1, 32 <sia Investments -auritius7 *imited J32 <siaK7 ac;uired
"+.1$@ of our E;uity Share capital. !nder a &overnance and Exit 8ights <greement dated
,ctober '5, '$$1 between 32 <sia, <4>* and 4irla T-T, so long as an initial public offering
has not occurred and 32 <sia holds no less than "$@ of our E;uity Shares, <4>* and 4irla
T-T are re;uired to procure that a7 our =ompany and its Subsidiaries shall not take or
pursue any of the following actions without 32 <sia9s prior consent such consent to be
obtained in a board andAor shareholders resolution7 including in respect of
1$4. any merger with, ac;uisition of, or amalgamation or consolidation with another company
or business%
1$$4.assuming or permitting to exist any borrowings or indebtedness in the nature of
borrowings if the amount of all such borrowings of our =ompany and its Subsidiaries would
exceed 8s. 1,0$$ million%
1$$$4. entering into a new line of business%
1$(4. increasing our authorized or issued share capital% or
1(4. entering into a :oint venture and b7 our =ompany makes available to 32 <sia certain
financial information relating to our =ompany and its Subsidiaries such as monthly
management accounts, ;uarterly unconsolidated balance sheet and profit and loss account
and the annual audited consolidated balance sheets and profit and loss accounts.
32 <sia also has a right to appoint one director to our 4oard so long as it holds at
least "$@ of our total issued and outstanding E;uity Shares. -r. 4iswa:it Subramanian has
been appointed to our 4oard by 32 <sia pursuant to the exercise of the above right. In
addition, any I3, of our E;uity Shares re;uires 32 <sia9s written consent, and, further, in any
such I3,, 32 <sia has the right to offer for sale such number of E;uity Shares representing
up to "$@ of the total E;uity Shares which are held by it. 4y its letters dated .ecember ',
'$$1 to <4>* and 4irla T-T, 32 <sia has given its written consent for the Issue and has
confirmed that it does not intend to offer for sale any of the E;uity Shares held by it in such
Issue.
6e, either directly or through our Subsidiaries, provide mobile services in the <ndhra
3radesh, .elhi, &u:arat, Iaryana, (erala, -adhya 3radesh, -aharashtra and !ttar
3radesh 6est7 =ircles, and have recently launched services and as such are in the process
of fully rolling-out our network in the !ttar 3radesh East7, 8a:asthan and Iimachal 3radesh
=ircles pursuant to licenses issued by the .oT.

MAJOR EVENTS:

T*' #*rn&6, ) A', '('nt+ ) t*' C-.an, )r- $n#r.rat$n $+ +'t "t %'&8:
1;;9: Incorporated as 4irla =ommunications *imited ,btained licenses for providing &S--
based services in the &u:arat and -aharashtra =ircles following the original &S- license
bidding process
1;;=: =hanged name to 4irla <TCT =ommunications *imited following :oint venture between
&rasim Industries and <TCT =orporation
1;;:: =ommenced operations in the &u:arat and -aharashtra =ircles
1;;;: -igrated to revenues share license fee regime under >ew Telecommunications 3olicy
J>T3K7
2222: -erged with Tata =ellular *imited, thereby ac;uiring original license for the <ndhra
3radesh =ircle
2221: <c;uired 83& =ellular *imited and conse;uently the license for the -adhya 3radesh
including =hhattisgarh7 =ircle =hanged name to 4irla Tata <TCT *imited
2221G ,btained license for providing &S--based services in the .elhi =ircle following the
fourth operator &S- license bidding process
2222: =hanged name to Idea =ellular *imited and launched JIdeaK brand name =ommenced
commercial operations in .elhi =ircle 8eached the one million subscriber mark
2223: 8eached the two million subscriber mark
222<: =ompleted debt restructuring for the then existing debt facilities and
<dditional funding for the .elhi =ircle <c;uired Escotel -obile =ommunications *imited
subse;uently renamed as Idea -obile =ommunications *imited7 8eached the four million
subscriber mark Dirst operator in India to commercially launch E.&E services
2229: 8eached the five million subscriber mark Turned profit positive 6on an award for the
J4ill DlashK service at the &S- <ssociation <wards in 4arcelona, Spain Sponsored the
International Indian Dilm <cademy <wards
222=: 4ecame part of the <ditya 4irla &roup subse;uent to the T<T< &roup transferring its
entire shareholding in the =ompany to the <ditya 4irla &roup <c;uired Escorts
Telecommunications *imited subse;uently renamed as Idea Telecommunications *imited7
8estructuring of debt *aunch of the >ew =ircles 8eached the "$ million subscriber mark
8eceived *etter of Intent from the .oT for a new !<S *icense for the -umbai =ircle.
8eceived *etter of Intent from the .oT for a new !<S *icense for the 4ihar =ircle through

<ditya 4irla Telecom *imited. <4>*, the parent of <ditya 4irla Telecom *imited, pursuant to a
letter dated >ovember '', '$$1, agreed to transfer its entire shareholding in <ditya 4irla
Telecom *imited to the =ompany for the consideration of 8s. "$$ million.
I.E< =ellular is a leading &S- mobile service operator with pan India licenses. 6ith
a customer base of over +$ million in "2 service areas, operations are soon expected to start
in ,rissa and Tamil >adu-the first steps in providing pan India services covering over #$@ of
IndiaFs telephony potential.
COVERAGE AREA OF IDEA CELLULAR LTD.
T*' #*rn&6, ) A', '('nt+ ) t*' C-.an, )r- $n#r.rat$n $+ +'t "t %'&8:
1;;9:
Incorporated as 4irla =ommunications *imited
,btained licenses for providing &S--based services in the &u:arat and -aharashtra
=ircles following the original &S- license bidding process.
1;;=:
=hanged name to 4irla <TCT =ommunications *imited following :oint venture between
&rasim Industries and <TCT =orporation
1;;::
=ommenced operations in the &u:arat and -aharashtra =ircles

Birla AT&T commence Cellular operations Maharashtra & Gujarat
1;;;:
-igrated to revenues share license fee regime under >ew Telecommunications 3olicy
O>T3O7
2222:
-erged with Tata =ellular *imited, thereby ac;uiring original license for the <ndhra 3radesh
=ircle

MoU for merger between Birla AT&T and Tata Cellular imited Andhra !radesh signed "#an4
2221:
<c;uired 83& =ellular *imited and conse;uently the license for the -adhya 3radesh
including =hattisgarh7 =ircle
=hanged name to 4irla Tata <TCT *imited

,btained license for providing &S--based services in the .elhi =ircle following the
fourth operator &S- license bidding process
Ac$uired %!G Cellcom& service provider in Madhya !radesh "'eb( Awarded
2222:
=hanged name to Idea =ellular *imited and launched OIdeaO brand name
=ommenced commercial operations in .elhi =ircle
8eached the one million subscriber mark

Brand )*+A launched *elhi operations commence ",ov(
2223:
8eached the two million subscriber mark
222<:
=ompleted debt restructuring for the then existing debt facilities and additional funding
for the .elhi =ircle.

<c;uired Escotel -obile =ommunications *imited subse;uently renamed as Idea
-obile =ommunications *imited7
8eached the four million subscriber mark
Dirst operator in India to commercially launch E.&E services '$$2
Ac$uired +scotel& incumbent cellular service provider in -aryana& U!".( & /erala and new licensee in -!
2229:
Subscriber base as on .ecember 5", '$$2G 1,+?5,#1'
8eached the five million subscriber mark

Turned 3rofit 3ositive
6on an <ward for the O4ill DlashO service at &S- <ssociation <wards in 4arcelona,
Spain
Sponsored the International Indian Dilm <cademy <wards
222=:
Subscriber base as on .ecember 5", '$$1G "',++',+2$
4ecame part of the <ditya 4irla &roup subse;uent to the T<T< &roup transferring its entire
shareholding in the =ompany to the <ditya 4irla &roup
<c;uired Escorts Telecommunications *imited subse;uently renamed as Idea
Telecommunications *imited7
8estructuring of debt
*aunch of the >ew =ircles
8eached the "$ million subscriber mark
8eceived *etter of Intent from the .oT for a new !<S *icense for the -umbai =ircle.
8eceived *etter of Intent from the .oT for a new !<S *icense for the 4ihar =ircle
through <ditya 4irla Telecom *imited. <4>*, the parent of <ditya 4irla Telecom
*imited, pursuant to a letter dated >ovember '', '$$1, agreed to transfer its entire
shareholding in <ditya 4irla Telecom *imited to the =ompany for the consideration of
8s. "$$ million.
222::
Subscriber base as on .ecember 5", '$$?G '",$2+,$'?

6on an award for the O=<8EO service in the O4est 4illing or =ustomer =are
SolutionO at the &S- <ssociation <wards in 4arcelona, Spain
Initial 3ublic ,ffering aggregating to 8s. '0,"0? million and *isting of E;uity Shares
on the 4ombay Stock Exchange and the >ational Stock Exchange
-erger of seven subsidiaries with Idea =ellular *imited
8eached the twenty million subscriber mark
222>:
Subscriber base as on .ecember 5", '$$0G +$,$"1,"25
Idea ac;uired # licences for 3un:ab, (arnataka, Tamil >adu C =hennai, 6est 4engal,
,rissa, (olkata, <ssam, >orth East and /ammu C (ashmir
<c;uired Spice =ommunications with the operating circles of 3un:ab and (arnataka
*aunched services in -umbai metro in the largest single metro city launch, ever
*aunched services in 4ihar
222;:
Idea launches services in Tamil >adu
Idea expanded services into ,rissa
2.3 PRESENT STATUS OF THE IDEA CELLULAR LTD.

The entire Indian region is divided into '' in some places it is mentioned '57 circles that
are divided into three categories based on their economic potentialG <,4 and =.
=urrently, I.E< =ellular exploits more than 1$@ of India9s telephony potential. It operates
in some of the top Indian circles. These areG <ndhra 3radesh C .elhi inclusive of >=87,
&u:arat, Iaryana, Iimachal 3radesh, (erala, -adhya 3radesh C =hhattisgarh, -umbai,
-aharashtra C &oa, 8a:asthan, !ttar 3radesh 67, and !ttar 3radesh E7.
The "5 circles where I.E< =ellular operates are further categorized into established and
new service areas.
Established services areas includeG The established service areas are .elhi, <ndhra
3radesh, &u:arat and -aharashtra, Iaryana, (erala, -adhya 3radesh and !ttar 3radesh
6est7.
>ew Service areas includeG !ttar 3radesh East7, 8a:asthan, Iimachal 3radesh, 4ihar,
-umbai, (arnataka and 3un:ab.
I.E< =ellular is also going to expand its business in ,rissa and Tamil >adu region which will become
the company9s first stepping stone towards becoming a pan Indian mobile operator
Ta%&'-2.1
S"%+#r$%'r %a+':
I!'aB+ +"%+#r$%'r %a+' a+ ) Mar#* 222; a##r!$n6 t t*' C1D $+ a+ )&&8+
-aharashtra and &oa - :?<::?=2
-adhya 3radesh and =hhattisgarh - 9?21;?=2:
<ndhra 3radesh - 9?2<9?291
(erala - <?3:1?:92
&u:arat - 3?;1>?192
!ttar 3radesh 6est7 C !ttarakhand - <?2;3?<12
.elhi - 2?<29?1=>
Iaryana - 1?9:9?32;
!ttar 3radesh East7 - 2?221?29=

8a:asthan - 1?229?:2=
Iimachal 3radesh - 1<1?>1;
-umbai - :91?:9:
4ihar C /harkhand - >=3?2<>
Totaling to 01&112&345 or 26207(Approx.) of the total 391,760,569
[1]
mobile onnetion! in
)ndia.
F"rt* E"art'r 'n!'! Mar#* 31? 222;:
!nless stated otherwise, the financial data in this report is derived from our unaudited A
audited consolidated financial statements prepared in accordance with Indian &<<3. ,ur
financial year ends on -arch 5" of each year, so all references to a particular financial year
are to the twelve months ending -arch 5" of that year. In this report, any discrepancies in
any table between the total and the sums of the amounts listed are due to rounding-off. There
are significant differences between Indian &<<3, ID8S, and !.S. &<<3% accordingly, the
degree to which the Indian &<<3 financial statements will provide meaningful information is
dependent on the reader9s level of familiarity with Indian accounting practices. <ny reliance
by persons not familiar with Indian accounting practices on the financial information
presented in this report should accordingly be limited. 6e have not attempted to explain
those differences or ;uantify their impact on the financial data included herein.
!nless stated otherwise, industry data used throughout this report has been obtained
from industry publications. Industry publications generally state that the information contained
in those publications has been obtained from sources believed to be reliable but that their
accuracy and completeness are not guaranteed and their reliability cannot be assured.
<lthough we believe that industry data used in this report is reliable, it has not been
independently verified. <ctual results may differ materially from those suggested by the
forward-looking statements due to risks or uncertainties associated with our expectations with
respect to, but not limited to, our ability to successfully implement our strategy, our growth
and expansion, technological changes, our exposure to market risks, general economic and
political conditions in India which have an impact on our business activities or investments,
the monetary and interest policies of India, inflation, deflation, unanticipated turbulence in

interest rates, foreign exchange rates, e;uity prices or other rates or prices, the performance
of the financial markets in India and globally, changes in domestic and foreign laws,
regulations and taxes and changes in competition in the industry
Ta%&'-2.2
P'r)r-an#' at a 6&an#' F I!'a Stan!a&n'
Idea =ellular *imited JIdeaK7 is a leading mobile services operator in India, with Q 5#
mn subscribers as on -archP$#. Idea has a subscriber market share of "#.2@ in its 0
established service areas, and "+.2@ in its "5 operating service areas. <fter inclusion of
Spice =ommunications, 4rand Rdea has +5.$' mn subscribers, corresponding to a "".$@
national market share.
A. Pr-t'r Gr".
Idea is part of the <ditya 4irla &roup, IndiaFs first truly multinational group. The &roup
has businesses in sectors ranging from metals, garments, cement, fertilisers, life insurance

and financial services among others. ,ver 2$@ of the &roup9s revenues are derived from
overseas operations. The group operates in '2 countries, and is anchored by an
extraordinary force of over "'2,$$$ employees belonging to '2 nationalities. The current
&roup holding of +#."5@ in Idea is made up of%
Ta%&'-2.An! F$6-2.1
<ditya 4irla >uvo *td. '?.$'@
4irla T-T Ioldings 3vt. *td. #."2@
Iindalco Industries *td. ?.5?@
&rasim Industries *td. 2.2'@
I&I Ioldings 3vt. *td. $.$0@
Tta& <;.135

Ta%&'-2.<
Y'ar En!'!
Part$#"&ar+ Un$t+ FY-2; FY -2> FY-2: FY-2=
,perating Service
<reaEo37
>os. "5 "" "" 0
Subscriber baseEo37 mn 50.# '+.$ "+.$ ?.+
=ell SitesEo37 >os. ++,'5$ '+,?15 "$,""+ +,?15
&ross 8evenue mn ##,1'' 1?,5?+ +5,0?5 '#,01#
E4IT.< mn '?,25? '',1#5 "+,01' "$,01+
3<T mn #,?2+ "$,+'5 2,$'5 ',""0
=ash 3rofit mn '5,511 "#,0+' "",?2" ?,1"5
>et 6orth mn "5#,$50 52,++1 '",?#0 "",551
*oan Dunds mn ??,15" 12,"2+ +',2$2 5',021
=ash C =ash
E;uivalent
mn +#,1"+ "$,252 "0,'"' ",+#5
>et .ebt to E4IT.< !nit ".$' '.+" ".15 '.0#
>et .ebt to >et 6orth !nit $.'$ ".2+ "."" '.??

8,=E @ "".2@ "0.'@ "2.5@ "".0@
*ose not include joint ventures i6e& 8pice Communication and )ndus Toewers
,et debt to +B)T*A for the $uarter is based on the annuali9ed figure of $uarterly +B)T*A
F$6-2.2

Ta%&'-2.9

Y'ar En!'!
Part$#"&ar+
-ar-$# .ec-$0
,perating Service
<reaEo37
"5 "5
Subscriber baseEo37 50.# 5+.'
=ell SitesEo37 ++,'5$ 5#,'0#
&ross 8evenue '0,1'1 '1,'$#
E4IT.< ?,+"2 1,0$2
3<T 5,$5' ',21'
=ash 3rofit 1,0#1 1,"0$
>et 6orth "5#,$50 "52,#0#
*oan Dunds ??,15" ##,'5$
=ash C =ash E;uivalent +#,1"+ ?#,20?
>et .ebt to E4IT.< $.#+ $.?'
>et .ebt to >et 6orth $.'$ $."+
8,=E 0.#@ 0.#@
F$6-2.3

Fa+t'+t Gr8$n6 Ma/r T'&# F Ba#A t Ba#A Y'ar+ ) Strn6 MarA't Ga$n+
Standalone revenues for the ;uarter at 8s. '0,1'1 mn, grew #.'@ on a SoS basis. In
a period marked by economic downturn and increased competitive and price pressure, Idea
was able to maintain its strong growth momentum. <nnual revenues of ##,1'' mn show a
growth of +?.#@ compared to the last year. This revenue growth of +?.#@, on the back of the
D)$0 revenue growth of 25.1@, places Idea as the fastest growing ma:or operator in one of
the largest, fastest growing, and most competitive telecom markets in the world.
Idea on a standalone basis, added +.? mn subscribers in the ;uarter, its highest ever.
Dor the entire year D)$#, subscriber base has grown by ?#.' @. In its 0 established service
areas, Idea strengthened its market position by gaining "@ market share, and consolidating
its position close to the market leader. In the 5 gestating service areas, Idea also increased
its market share to 1.5@, from 2.0@ a year ago.
In the newly launched service areas of -umbai and 4ihar, Idea has ac;uired a +.$ @
share of the combined market, with a net adds market share of "1.1@, during last 1 months.
Total -inutes on the >etwork at ++,''+ mn grew by #.#@ on a SoS basis. The
<verage 8ealised 8ate per -inute, which had moved up from 1'p to 1+p in the previous
;uarter, settled at 15p.
In!"+ IRU I-.a#t
Idea standalone7 rent-paying cell sites :umped from '",+2# at .ec9$0 ;uarter end to
51,2?5 at -ar9$# ;uarter end. This increase of "2,'#+ cell sites includes "",$#+ cell sites on
Idea towers, transferred to Indus, through the I8! effective /anuary ", '$$#. <s of -arch9$#,
out of the 51,2?5 rent paying cell sites, '2,"2$ cell sites are on Indus Towers. The accounting
treatment of the I8! arrangement increased the network operating cost for the -arch9$#
;uarter. 8ental income that Idea was deriving from guest sites also ceased w.e.f. /anuary ",
'$$#, as these would accrue to Indus. The combined impact of these ' factors was the
e;uivalent of Q 5.+ @ E4IT.< contraction for the ;uarter ended -arch9$#. !ntil the merger
into Indus is consummated, Idea will account for depreciation for the I8! towers. Iowever,
Idea will receive an I8! income for the transferred towers until the merger, which for the
;uarter ended -arch9$# was the e;uivalent of Q".'@ of the E4IT.<. Therefore, the net
negative E4IT.< impact for the ;uarter was Q'.' @. The above treatment does not include
Idea9s pro-rata share of Indus9 profitAloss. The financials do not also capture the notional
capex cost saving derived because of Indus, and the speed to market benefit.

!pon consolidation, Idea9s share of "1@ of Indus revenues is 8s. ",0?$ mn. Iowever,
with consolidation eliminations, no revenue has been consolidated. <n e;ual amount has
been eliminated from the Indus rentals accounted by Idea. Durther Idea has consolidated 8s.
","#1 mn as "1@ share of Indus operating expenses, after elimination of I8! income
received from Indus.
N't8rA Ca.a#$t,
Idea rolled out +,#+" cell sites during the -arch9$# ;uarter, taking the D)$# tally to
"#,+5?, and the Eo3 cell sites to ++,'5$. In the preceding year D)$0, Idea had added "+,1?#
cell sites. Thus, in the last ' fiscal years, Idea has enhanced its cell site capacity +.+ times,
representing a massive enhancement of capacity to build competitive strength
The capacity already built, together with improved spectrum availability and enhanced
technology features will result in greater capex efficiency in D)"$, and reduced capex
intensity.
Total capex for D)$# was 8s. 2+.2 bn. Dor D)"$, including for new service area
launches, the capex will indicatively be in the region of 8s. 1$.$ bn. This estimate does not
factor the unknown impact of a possible 5& auction.
F$nan#$a& P'r)r-an#'
<t the E4IT.< level the net negative impact of Indus I8! is '.'@ for the ;uarter.
Iowever, E4IT.< margin for S+ at '2.#@ is almost similar to the S5 margin, indicative of
other operational efficiencies which have absorbed the negative Indus I8! impact.
.epreciation C <mortization for D)$# at 8s."5,'"' mn increased by 2$.?@ on a )o)
basis. >et interest and finance cost for D)$# at 8s.+,$?$ mn increased by +1.1@ on a )o)
basis.
3<T for the ;uarter at 8s.5,$5' mn was higher by "0.5@ on a SoS basis. <fter
absorbing the losses of the new launches of -umbai and 4ihar, 3rofit after Tax for D)$# was
8s.#,?2+ mn.
N'8 La"n#*'+
4rand Idea has expanded its wings to its "1th service area, with the commercial
launch of ,rissa in <pril '$$#. 6ith this, Idea now covers Q 0$@ of the national subscriber

base. 3reparatory work for other roll outs is on track, with Tamil >adu planned for the /un9$#
;uarter. 6ithin the calendar year '$$#, Idea plans to have pan India operations.
Ta$&r'! A..ra#* )r D$))'r'nt S'r($#' Ar'a+
Idea holds #$$ -Iz &S- spectrum in # service areas, which make up Q2$@ of the
national market. This fre;uency band confers capex and opex benefits. It is also
accompanied by early mover advantage. Idea is the mobility revenue market leader in 5 of
these service areas, and is overall in the second spot. The twin advantages of spectrum and
scale underpin Idea9s enduring competitive edge.
In some of the remaining service areas, Idea pursues a strategy of optimisation as
opposed to maximisation. It plans to achieve a pan India footprint and leverage synergies of
scale and wider presence, and calibrated capex spend through infrastructure sharing. The
focus is on operational and financial goals, and not on league tables.
The service area tailored strategy is designed to enhance Idea9s long term
competitiveness.
U.!at' n S.$#' C--"n$#at$n+
The accounts of Spice continue to be consolidated in proportion of the shareholding of
+".$#@, until its eventual merger into Idea. Dinalisation of the merger scheme is in an
advanced stage and will be effective after the court order.
U.!at' n In!"+ T8'r+
<s the 5 shareholders, 4harti ,Infratel, Bodafone Essar *td and <4T* "$$@
subsidiary of Idea7 signed the I8! with Indus effective /anuary $", '$$#, Indus has started
invoicing respective entities for the sites covered by the I8!. Idea has filed the scheme for
demerger of towers to I=TI*. This will be followed by the filing of the merger scheme of I=TI*
with Indus.

Ta%&'-2.=
S*ar'*&!$n6 Patt'rn a+ n Mar#* 31? 222;:
,ote: )ndian !romoters;; holding in 8pice Comm6 consists of 3<6=27 by )dea Cellular and 161<7
by Green Acre Agro 8ervices !6 td
2.< FUNCTIONAL DEPARTMENTS OF THE IDEA CELLULAR LTD.
*ike most of the companies Idea cellular *td. has three main functional departments.
They areG
Iuman 8esource .epartment
Dinancial .epartment
-arketing .epartment
HUMAN RESOURCES DEPARTMENT:
STRUCTURE OF HUMAN RESOURCES DEPARTMENT
8E&I,><* S<*ES
-<><&E8
I 8 -<><&E8

Iuman resource management I8-7 is a management function that helps
manager recruit, select, train and develops members for an organisation.
Iuman 8esource department is headed by 8E&I,><* S<*ES -<><&E8, who looks
after the 6elfare activities, .isciplinary activities, training and development, etc of the
=ompany.
The 8E&I,><* S<*ES -<><&E8 is assisted by I 8 -anagers.
I 8 -anagerG <ll the training and development activities are devised and implemented
by I 8 -anager in consultation with 8E&I,><* S<*ES -<><&E8. <ll the activities
related to performance appraisal, promotion, transfer, demotion etc are devised and
implemented by I 8 manager in consultation with the 8E&I,><* S<*ES
-<><&E8..
T*' H R -ana6'r *a+ )&&8$n6 )"n#t$n+:
To maintain good relationship between the employer and employees.
To maintain good cooperate relations.
To select right type and number of employees.
8ecruitment of employees -anpower.
3erformance review of employees.
-aintenance of all personnel records.
=o-ordination with the other department in recruitment of employees.
To comply with norms of state government and statutory bodies
To maintain effective and efficient work force.
Implementing all policy matters.
FINANCE DEPARTMENT:
STRUCTURE OF FINANCE DEPARTMENT
I 8 =,>S!*T<>T
8E&I,><* S<*ES
-<><&E8
<==,!>T IE<.

Dinancial management is the one of the four important areas of the
management .the ma:or ob:ective of any business firm is to make profit for its
proprietor. To reach the ob:ective the firm purchases the various factors of production
and then produces the output to sale, all these process re;uires funds. Dinance is said
to be circulatory system of the economic body of the firm.
Dinance department is head by 8E&I,><* S<*ES -<><&E8, who =ontrols
various financial activities of the company which include the <dvances, <sset
3lanning, =orporate credit, 8etail credit, Treasury, etc of the company.
The Executive 3resident is assisted by <==,!>T IE<..
<==,!>T IE<.G <ll the credit, advances, retail related activities of the company are
made by <==,!>T IE<. and <dvances and is assisted by 4ack ,ffice Staff.
<==,!>T IE<. has the following functionsG
To protect the financial interest of the company.
It helps in achieving the business results 3rofitably7.
-onitoring the funds, collection and payment.
=ontrolling the inflow and outflow of cash.
Dinancial planning and mobilization of cash.
To see that the company does not suffer from lack of finance.
To exercise the cost control and cost reduction techni;ues.
To monitor the budget and budgetary controls
MAR0ETING DEPARTMENT:
STRUCTURE OF MAR0ETING DEPARTMENT
4<=( ,DDI=E ST<DD
8E&I,><* S<*ES -<><&E8
<8E< S<*ES -<><&E8

The marketing department is headed by 8egional Sales -anager of the branch.
The 8egional Sales -anager is assisted by the <rea Sales -anager who is in turn assisted
by <ssistant Sales -anager and the trainees are assisted by assistant managers, who work
under them. The executives are under the area sales managers who used to assist them with
the assistant managers.
T*' (ar$"+ )"n#t$n+ ) -arA't$n6 !'.art-'nt ar':
To introduce various schemes to the customer via various communication media.
To conduct market research in various areas of customer interest.
To estimate the response of customer on various company schemes.
To introduce new marketing trends especially in case of service marketing.
2.9 ORGANI@ATIONAL STRUCTURE AND ORGANI@ATIONL CHART
<SSIST<>T -<><&E8
ETE=!TIBES

Managing Director
Vice
President
I8. C
3ersonnel
Vice
President
8C.
Vice
President
3ro:ects
Vice
President
-arketing
8egional
Sales
-anager
Sales
,fficer
-arket
Intelligent
<ssistants
I8.
-anager
<ssistants
-anager
<ccnts
-anager
Tax
Dactory
<ccnts.
I8.
-anager
Suality
<ssts.
3ro:ect
-anager
<sst.
-rkg. -gr
Dield
,fficers
-arketing
-anager
Vice
President
Dinance
Vice
President
Sales
8egional
-rkg. -gr

<sst.
-anager
Idea cellular ltd. are a conglomerate in the telecom industry. <s it is clear from the
group structure given above. It is a purely Indian based company earning its revenue in
crores and crores of rupees. Idea is not only in India but also spread across the world
providing its services.
I!'a #'&&"&ar Lt!
I dea cellular *td is IndiaFs leading provider of telecommunications services. The
company has + distinct 4usiness divisions - -obile C telephone services, broadband
services, long distance services and enterprise services.
Or6an$Gat$n Str"#t"r' ) I!'a #'&&"&ar &t!.
I!'a C'&&"&ar

C*a$r-an : 0"-ar Man6a&a- B$r&a
Mana6$n6 D$r'#tr an! D$r'#tr: San/''( A6a
VP Cr.rat' A))a$r+ : Ra/at M"A*ar/''
D$r'#tr O.'rat$n+ : A-%r$+* Ja$n
T,.' : S"%+$!$ar,
F"n!'! : 1;;9
H'a!H"art'r+ : In!r'? D'&*$? P"n'? In!$a
In!"+tr, : T'&'#-
Pr!"#t+ : M%$&'
Pna- Tan8an$ : H"-an R'+"r#'+ F R'#r"$t-'nt
Har$t+* Ba.at : G'n'ra& Mana6'r - Cr.rat' HR
Man/ 0"-ar : Sr EI'#"t$(' - HR R'#r"$t-'nt+
Sat,a/$t Da+* : G'n'ra& Mana6'r

HR 1Or6an$+at$n D'('&.-'nt4
S"%!* Sr$(a+ta( : COO
7'%+$t' : 888.$!'a#'&&"&ar.#-
2.= PRODUCT AND SERVICE PROFILE OF THE IDEA CELLULAR
PRODUCT:
I!'a .r($!'+ )&&$n6 .r!"#t+ )r t*' n''! !'-an! ) !'+$r' #"+t-'r
PREPAID JJ GO PREPAID
&oing 3repaid is easy. <nd rewarding, with maximum talk time and exciting offers. >ot
to mention a host of value added services, two-way national roaming and much more. To go
3repaid, :ust fill up a simple 3repaid Enrolment form. This form comes enclosed in the SI-
pack. )ou can also pick one up from any Idea Shop or download it. <s per new government
regulations, all 3repaid customers must provide the documents along with the Enrollment
form.
POSTPAID JJ GO POSTPAID
*ife becomes simpler when you become a Idea 3ostpaid customer. =hoose from a
variety of affordable and attractive talk plans, and many convenient payment options for your
monthly bill.
To get a Idea 3ostpaid connection, all you have to do is submit a =ustomer <greement
Dorm and Enrollment form, along with one of the documents as your I. and address proofG
S'r($#'+:
6ith more than 5 billion people using &S- and approximately 0$ percent of the
worldFs population covered by mobile networks, &S- is fast becoming the most popular way
to deliver information, communication and entertainment services to people worldwide
In#r'a+'! +.*$+t$#at$n:

Since the "##$s, the &S- family of technologies has become increasingly
sophisticated and &S- networks now offer a wealth of mobile data and entertainment
services.
<fter voice, the growth of S-S Short -essaging Service7, or text messaging,
continues, with an estimated one trillion messages sent globally in '$$2. -ore advanced
messaging services L such as --S -ultimedia -essaging Service7, I- Instant -essaging7
and mobile email L offer users an even richer mobile messaging experience.
M'!$a-r$#* #nt'nt:
-obile communications also has the opportunity to become the new personal
entertainment and information medium of choice. <lready dubbed the Ffourth screen,F after
television, cinema and the 3=, the industry is delivering a vast array of media rich content to
users throughout the world including advanced mobile gaming applications, mobile music,
and TB and video content.
The benefits of convenience, immediacy and personalisation have fostered the growth
of location-based services and mobile commerce applications. Internet-style services on
hundreds of thousands of 6<3 sites contain much of the information and images found on
the wider Internet
V$#':
S'r($#'+ t *an!&' $n#-$n6 #a&&+
-ost &S- operators provide a number of services that help their customers to manage
incoming calls. These services can usually be activated in the FSettingsF section of your
phoneFs menu.
V$#'-a$&:
This service functions :ust like a traditional answer machine. If your line is engaged or
you donFt answer an incoming call after a pre-specified number of rings, your mobile operator
diverts the caller to a voicemail system. The caller is welcomed by a pre-recorded greeting
and given the opportunity to leave a message.

)ou are alerted to a new voicemail by a text-message or a call from your operator. )ou
can then retrieve the new message by dialling a number provided by your operator. The
service typically allows you to listen to the message again, save the message for a certain
number of days or delete it.
Ca&& 7a$t$n6 K Ca&& H&!
6hen you are using your phone, the handset can be set to alert you to any incoming
calls. )ou can then put your current conversation on hold by pressing a button on the phone,
allowing you to take the new call. )ou typically press the same button again to return to your
earlier conversation.
Ca&& Fr8ar!$n6
-ost operators offer you the option of diverting incoming calls to another number.
Ca&& R'+tr$#t$n+
If someone else is borrowing your phone, you may want to restrict the calls they can make,
such as international or premium-rate numbers, for example.
S*8 r H$!' n"-%'r
To help you to decide whether to answer a call, most mobile phone operators will display the
number of any incoming call on the screen of your handset. That means that your number will
also appear on the handset of the person you are calling. Iowever, you can typically disable
this function using your handset.
P"+*-t-Ta&A ('r C'&&"&ar
Some &S- operators are now offering 3ush-to-Talk over =ellular 3o=7 services, which
allow people to use their phones as walkie-talkies, merely pushing a button to talk to another
user or group of users.
!sers can check whether their FbuddiesF people pre-selected from their contactsF list7
are connected before activating the service. ,nly one person can talk at a time and all other

participants hear the speech.
The service has been successful in the !.S. with business users and a number of
European &S- operators are now offering 3o= to consumers.
In order to use the service, users need to be a customer of an operator that has
launched 3o=, and have a compatible handset that has the 3o= software built into the
device. 3lease contact your operator to determine whether your network supports 3o=
services.
SMS
S-S Short -essaging Service7 allows users to send and receive text messages on a
mobile phone. Each message can be up to "1$ characters long and sent to and from users of
different operator networks. <ll mobile phones support S-S.
4illions of text messages are sent worldwide every week. It is estimated that a
worldwide total of " trillion text messages were sent in '$$2.
In addition to person-to-person S-S, a variety of content-based text messaging
services are available. The ma:ority of &S- operators allow users to subscribe to services
that send news, sport and entertainment content direct to a mobile phone in the form of an
S-S. Dor more information please contact your &S- operator.
MMS
--S -ultimedia -essaging Service7 is a store and forward messaging service that
allows subscribers to exchange multimedia messages.
<s such it can be seen as an evolution of S-S, with --S supporting the transmission
of additional media typesG text, picture, audio, video, or a combination of all four.
The originator can easily create a -ultimedia -essage, using phone camera, or can use
images and sounds stored previously in the phone or downloaded from a web site7.
If the recipient phone is not switched on, the -ultimedia -essage will be stored and
sent as soon as the phone is switched on. < number of -ultimedia -essages can be stored
in the user9s handset and reviewed or forwarded later. 6ith --S, it is also possible to send
messages from phone to email, and vice versa.

In order to send or receive a --S, the user must have a compatible phone that is
running over a &38S or 5&S- network. -ost mobile phones and operator networks support
--S.--S -ultimedia -essaging Service7 is a store and forward messaging service that
allows subscribers to exchange multimedia messages.
<s such it can be seen as an evolution of S-S, with --S supporting the
transmission of additional media typesG text, picture, audio, video, or a combination of all four.
The originator can easily create a -ultimedia -essage, using phone camera, or can
use images and sounds stored previously in the phone or downloaded from a web site7.
If the recipient phone is not switched on, the -ultimedia -essage will be stored and
sent as soon as the phone is switched on. < number of -ultimedia -essages can be stored
in the user9s handset and reviewed or forwarded later. 6ith --S, it is also possible to send
messages from phone to email, and vice versa.
In order to send or receive a --S, the user must have a compatible phone that is
running over a &38S or 5&S- network. -ost mobile phones and operator networks support
--S.
S *8 !'+ MMS 8rAL
.epending upon the operator, a typical example of how a --S message can be sent and
received between two compatible --S phones is outlined belowG
". !sing a --S compatible phone, take a photo
'. !se your phone to personalise the message by adding text, sound clip or your own voice
5. Send the --S message
,n a compatible phone, the --S message will appear with a new message alert. The
picture message will open on the screen, the text will appear below the image and any sound
will begin to play automatically.
If the message is sent to a non-compatible phone the user will receive a S-S message
telling them they have been sent a picture message. They may then be given a website
address, and possibly a username and password to view the message.
"This is a simple e>ample that may differ from operator to operator6(

In+tant M'++a6$n6
Instant -essaging I-7 is an I3-based Internet 3rotocol7 application that can provide
real-time written communication between people using a 3= or *aptop.
-obile Instant -essaging is the ability to engage in Instant -essaging services from a
mobile handset. -obile I- allows users to address messages to other users using an alias
or user name7 and address book, enabling the sender to know when hisAher ObuddiesO are
available.
To date, users have re;uired an existing active I- account and a compatible handset
one with a pre-installed messaging client7 running over a &38S or 5&S- network. To start
using mobile I-, users need to log-in to the I- application.
E-a$&
6ireless email is the ability to send and receive email over wireless devices. <s '.2&
&38S7 and 5&S- networks give users constant connectivity access to their email, wireless
email services are expected to become increasingly popular.
There are a wide variety of handsets available today that support wireless push email
services.
"#!h refers to technologies that allow a central system, for example the mobile phone
network, to send L or push L information to an end-user without any action on their part or on
the part of the mobile device
6ith push email, emails are sent directly to the mobile device as soon as the email
server receives them rather than waiting for the user or email client to re;uest the email.
TodayFs push email devices range from mid-priced mobile phones through to
smartphones and specific email devices such as the 4lackberry
To use wireless email services, devices must have supporting software% please contact
your operator to determine whether your network supports email services.
Ent'rta$n-'nt
TVMV$!':

-obile TB and video services are hotly tipped to gain serious market momentum in the
next few years.
-obile TB services in theory offer the same FliveF broadcast images as those viewed
over the traditional medium. There are two ways to unite TB with mobile phone systemsG real-
time streaming over 5& networks and dedicated mobile broadcast networks.
-obile TB services streamed over 5& networks make use of the increased capacity
offered by 5&S- technology and can be viewed with a 5&S- handset. ,perators including
IutchisonA5 and Bodafone are pressing ahead with services that stream TB channels to 5&
handsets.
Tr$a&&$n6 t'#*n&6$'+
<n alternative way for operators to offer TB services is via dedicated, mobile TB
broadcast networks using technologies such as .B4-I, .-4 and -ediaD*,.
The ma:ority of broadcast mobile TB trials in Europe have been based on .B4-I
.igital Bideo 4roadcast-Iandheld7 technology and re;uire users to have a .B4-I
compatible handset. SD8, (3> -obile, TelefUnica -Uviles, ,' and Telstra have all trialled
.B4-I technology. -ore details can be found hereG 888.!(%-*-n&$n'.r6
<nother mobile TB broadcast technology is South (oreaFs S-.-4 Satellite .igital
-ultimedia 4roadcasting7 service which as been put together by S( TelecomFs T! -edia
subsidiary and /apanFs -obile 4roadcasting =orporation, and is provided by a single satellite.
In South (orea, the service has already reached " million users since its launch in .ecember
'$$2.
2.: MAR0ET PROFILE OF THE ORGANI@ATION
S$G' ) t*' MarA't
India has one of the fastest growing telecommunication systems in the world
expanding annually at more than '$@ over the last four years. The Indian communications

services industry has achieved the 2,$$,$$$ V12?#7 million mark in revenues and the cellular
industry is all set to cross 8s ",$$,$$$ V"5"17 million in D) '$$5-$+. <ccording to Ernst and
)oung Study, telecom subscriber base is expected to reach '$5 million by '$$? and
revenues are expected to triple to N'5-'2 billion by '$$? compared to N# billion in '$$'. The
mobile phone sector in '$$5-$+ registered three times higher growth than what was reported
in '$$'-$5. The industry added '" million mobile connections in a year. Iowever the growth
in fixed line has been negligible, merely 5@, from +".+0 million connections in -arch last
year to +'.20 connections in -arch this year.
Telephone penetration rate still remains low in India, which offers vast scope for
growth. Its teledensity of ?@ is a ;uarter that of =hina and rural density has :ust reached "@-
more than #?$ million Indians do not have access to a telephone.
MarA't Tr'n!+
The telecom industry continues to be on a roll, led largely by a boom in cellular
telephony, although growth of landline phones and internet connections continue to be Pheld
up9. =ellular growth has been triggered by the introduction of unified licensing regime by the
&overnment to enhance competition and create a level playing field between the &S- and
=.-< players. There has been a crash in the tariffs and handset prices by almost ?$@ over
the last +-2 years coupled with easy financing schemes and bundling of handsets with
connections by operators.
The cellular segment, which is currently experiencing a consolidation wave, will be key
growth driver of the Telecom services market in India. The market share of =.-< players is
growing gradually and steadily. T<T< Indicom, which offers both =.-< and &S- services,
has overtaken the &S- player 4harti to become the largest mobile player in terms of number
of subscribers.
6ith legal battles behind and limited scope for drastic price reductions, the service
operators are focusing on high- end services wireless internet7, high- end segments
corporate and broadband7, ;uality of service spectrum and bandwidth7, up gradation of
networks more capacity and new technologies7. The segments where consumers will see a

biggest improvement in near future will be internetAbroadband. If last year was the year of
wireless, this year could well be the year of broadband.

CHAPTER-3
DISCUSSIONS ON TRAINING
3.1 STUDENT 7OR0 PROFILE:

-y work profile in the organization was market research in th field of alternate trade
channels<T=7.alternate trade channels are the different channels or chains of outlet through
which idea cellular ltd. Sells their product i.e connections, recharge etc.
I was responsible for getting all the information of the market players from every outletin
the 4angalore .the informations like G
G'n'ra&
" 7 who is the managing director
'7 who is the store manager
57 what are the advertisement campaign etc..
I-.rtant
"7 Iow many connections are being sold
'7 Iow many recharges are being done in one month
57 6hat are asp i.e average selling price of any product
+7 6hich connection in the outlet is leading.
27 6hat are the gifts offered by the companies.
<fter getting the information, i had to compare and analyse what the market
condition of the idea cellular in 4angalore are. which are the areas upon which idea
cellular needs to focus on .what are the negative points which are to be corrected and
where this company stands in front of the other competitor and what are the measures
taken to improve the image or brand value.
These analysis i have done through the management tools like S6,T analysis and
many others. <fter the analysis i had to give presentation in our company.
ROLE OF THE MAR0ETING RESEARCH

-arketing research according to <merican marketing association is defined as
J-arketing research is the function which link the consumer, customer and public to the
marketer through information, information used to identify and define marketing opportunities
and problems generate, refine and evaluate marketing actions, monitor marketing
performance and improve understand of marketing as a processK
-arketing research is systematic design collection analysis and reporting of data
relevant to a specific marketing situation facing an organization. Every marketer need
research marketing research engage in a wide verity of activities, ranging from market
potential and market share studies to assessments of customer satisfaction and purchase
behaviour to studies of pricing, product, distribution and promotion activates.
<lthough most large companies have their own marketing research departments, they
often use outside firms to do special research takes as special studies.
3.2. D'+#r$.t$n ) &$(' 'I.'r$'n#'+:
J*ive experienceK is what ,the most valuable things in life of employee or for the fresher9s
who steps newly in the organization .live experience teaches many things G
"7 Iow to deal with the difficulties.
'7 Iow to convince the customers or clients.
57 Iow to survive in the cut throat competition.
-y live experience in handling the <T= alternate trade channels7 pro:ect which
has been provided by the idea cellular Ps managers was very enriching at the same
time it was most difficult and mind bursting .
-y :ob was to get the information about the various telecommunication players
as well as retail outlet, analyze the information and give the presentation.
I had to first go to the retail outlet with the intention to collect the data .in order to get
the information I had to convince the store managers to provide me those information.

Some of the store was very supportive, calm and understanding but some of them
were very rude to me. <t that point of time I used feel, I am not going do this :ob but I
carried out thinking this is what the challenging :ob is all about. Dor reaching the
distant height I had to start from the point zero.
I had to talk with them in a calm mind and with the convincing approach, no
matter how rude they talk. I had to assure them that the information I was willing to get
will not affect their chain of outlet and it won9t concern their company but some of the
information were concerning about their company , I had to take those information
also. That9s what management is all about.
<fter getting the information from the outlet I had to analyze what is the strength
and weakness of the I.E< =E**!*<8 and where this company is lagging behind the
other competiting players of telecommunication industry.
<nalyze the data using S6,T analysis or other techni;ue and prepare the
presentation in -icrosoft power pointG
6hat is the strength and weakness of the I.E< =E**!*<8.
6here this company is lagging behind the other competiting player of tale
communication industry.
6hat are my suggestions for carrying out the already launched and recently
launched productW
I had to present this presentation in front of the concern and pro:ect managers.
The most difficult part wasG
&etting the information from retail outlet.
Speaking my whole idea or presentation in front whole crew.
The whole difficulties and problems was worth while getting this type ofK *IBE
ET3E8IE>=EK.

CHAPTER-<
STUDY OF SELECTED RESEARCH
PROBLEM

<.1 STATEMENT OF RESEARCH PROBLEM
< study on J,ver <ll =ustomers Deedback 8egarding Idea cellular services in
4angalore cityK
Type of research on customer feedback towards Idea =ellular is a
combination of two types of research.
1. EI.&rat$(' an!
2. D'+#r$.t$('
It is '$@ explorative because the study is to find out the position of the services
provided by Idea as well its competitors in customers mind and relies on the
secondary data extracted from the dealer of all five companies.
It is 0$ @ descriptive because the study contains descriptive of the customers profile

and attitude of the respondents.
<.2 STATEMENT OF RESEARCH OBJECTIVES:
The marketing research serves single purpose of providing information to assist
marketing manager to make better decision to understand the problem and to take but we
are opportunity.
Ma$n %/'#t$(':
To know the Joverall customers9 feedback regarding Idea cellular services in 4angalore =ity.
S"% O%/'#t$(':
To analyze the customer response towards Idea cellular ltd. in
4angalore city.
To evaluate the 4rand Image opinion of the customer.
To know about the customer acceptance of the product.

To identify customer problem of Idea cellular ltd.
To know how far customer satisfied with company9s product and services.
To know customer preferences and disking regarding of bills.
To know customer perception towards on Idea cellular ltd.
<.3 RESEARCH DESIGN AND METODOLOGY
DESIGEN:
The noun J.esignK has been various meaning but the one suitable for an sub:ect is a
pattern or an outline of a research pro:ects workings. It is a statement of only the essentials
of the study those that provide basic guidelines for the pro:ect. It comprises a series of prior
documents that taken together to provide a -aster plan for executing a research pro:ect.
The formidable problem that allows the task of defining the research problems is the
preparation of the design of the research pro:ect popularly as the J8esearch .esignK
T*' !'#$+$n r'6ar!$n6 ar' a+ )&&8+:
< thorough review of literature to understand the theory of customer service and
satisfaction.
8eview of literature to understand recent development in the field.
Dormulation of ;uestionnaire to capture primary data.
.efining ob:ective of the study.
3reparation of data and analysis of plan.
<nalysis and interpretation of primary data.
Setting of hypothesis and testing of the same
=onclusions of the primary data.
< research study constitutes a research design .< research design is the management
of data in a manner that aims to combine relevance to the research purpose with
economy in proceedings. The 8esearch design has seen similarity to descriptive of a
model and design should comprise only what research need frame work.
3lan out the details for testing and implementing the work.
Explain the proposed study to others.

Three basic type of 8esearch designG
Exploratory 8esearch design
.escriptive 8esearch design
=asual or Experimental research design
,ur study is based mainly on descriptive research design becauseG
<n ob:ective is clearly formulated.
The techni;ue of data collection is planned.
Selection of sample or sample size7 is planned.
Sa-.&' S$G':
The sample size was determined by I considering many customer of the total number
of customer received covered in 4angalore city.
It has been assumed that the research methodology selected for the study is
appropriate.
It has been assumed that the information obtained from the respondents is true and
authentic
It has been assumed that the data collection instruments which have been base to
collect data from the sources are appropriate.
It has also assumed that while conducting the survey the selection of the area was
correct and appropriate.

STEPS IN RESEARCH DESIGN PROCESS
The following steps show the marketing research process in systematic hierarchical
model to make the research very easy towards my main ob:ective.
"7 .efine the research problem
'7 Estimation of value of information to the provided by the
research
57 Select the data collection method
+7 Select the measurement techni;ues
27 Select the sample
17 Select the analytical approach
?7Evaluate the ethics of the research
07 Specify the time and the financial cost
#7 3repare the research proposal

METHODOLOGY:
Draming the ob:ectives
3reparing Suestionnaire based on ob:ective
=arrying out the actual survey in <irtel ,ffice as well as in open market.
<nalyzing the data collected.
&iving recommendations based on findings.

LIMITATION OF STUDY:
"7 Study was restricted to 4angalore city only.
'7 The number of respondents is only "$$.
57 8espondents taken from only Idea cellular customers.
+7 The study was conducted on assumption given by the respondents.
27 Study was restricted only six weeks.
DATA COLLECTION METHODS:

The information re;uired for the pro:ect was collected from both primary and
secondary sources. The primary source consists of the survey method through interviews of
customers of all three companies.
Secondary source consists of the data collected from the dealers of the companies
as well as the brochures of the companies.
MEASUREMENTS TECHNIEUES:

F&&8$n6 ar' -'a+"r'-'nt t'#*n$H"'+ "+'! $n t*' ana&,+$+ ) t*' +t"!,.
E"'+t$nna$r'G ,ne o the effective tool of collecting necessary information form
respondents.
SAMPLING DESIGN

1. D')$n$t$n ) t*' .."&at$n:
<ll the subscribers of <irtel, Bodafone, and Idea, 4S>*, in 4angalore circle are
the population for the research. I select only customers of 4angalore circle.
2 .Sa-.&$n6 Fra-'+:
Subscribers of post paid service in 4i:apur circle in any of four organization i.e. <irtel,
Idea, Bodafone and 4S>*.
3. Sa-.&$n6 M't*!:
The sampling method vied is stratified sampling. I have sampling as how much
customers using Idea cellular mobile. In 4angalore circle more than '$,$$$ customers in
different Idea service. The 4S>* have more than +2@ customers, <irtel having up to 5$@
customers, Bodafone have up to "2@ customers and Idea having more than "$@ customers
of post paid mobile service.
<.D't'r-$nat$n+ ) Sa-.&$n6 ar':
Total number of sample size is "$$, which divided into + stratas.

9. Sa-.&$n6 .&an:
The sampling elements of this research are subscribers of post paid and pre paid
cellular service in 4angalore circle. =ustomers of Idea interviewed in Idea office only.
=ustomers of other three to be interviewed as to 4.S.>.*. in 4.S.>.*. office and to Bodafone
=ustomers in market area with help of Salesman and <lso to <irtel =ustomers in <irtel office.
<.< ANALYSIS OF DATA
CLASSIFICATION K TABULATION OF DATA
<fter the necessary data have been collected, they are tabulated by way of statistical
summary in accordance with the ob:ectives studied.
=lassificationG =lassification of raw data collected was done so as to reduce large
volume to homogenous group and so as to arrive at meaningful relationship. 4roadly the data
can be classified on the following four basicsG-
". Suantitative- <ccording to magnitude.
'. &eographical- <ccording to city area.
5. Sualitative- <ccording to attributes.
+. =hronological- <ccording to occurrence of the event in time.
The classifications adopted for the study are ;uantitative and ;ualitative classification.

Tabulation of data: Tabulation is one of the most important part and it is the last stage
in the processing of data. It is wanting the number of cases falling in to each class. <fter
classification it remains to add on the ;uestionnaire and enumerates the different response.
3utting J>umber of 8espondentsK as one goes through the responses one by one does
manual tabulation.
Ta%&'-<.1
P"r.+' ) "+$n6 t*' I!'a #'&&"&ar.
U+'r+ N. ) r'+.n!'nt P'r#'nta6'154
4usiness 21 21
3rofessional "1 "1
Easy =ommunication '2 '2
Status $5 $5
Tta& "$$ "$$

S"r#': 3rimary
F$6-<.1
In)'r'n#' : The
percentages of purpose of
usage of TTS* are
follows.
4?7 e>clusively
of users are for business
purpose& <?7 for professional purpose& @47 for easy communication& 07 in favors of
TT8 for their social status6
Ta%&'-<.2
F'at"r' (t$n6 %, #"+t-'r
U+'r+
N. ) r'+.n!'nt
P'r#'nt
a6'154
Service 1' 1'
4rand Image '5 '5
Suality "$ "$
3rice $2 $2
Tta& "$$ "$$
S"r#': 3rimary .ata F$6- <.2

In)'r'n#'
The customers have shown the preference for Idea mobiles based on different features such
asG
?@7 towards better services& @07 attached to brand image& <=7 for $uality and 47
weighed for the price.
Ta%&'-<.3
S'r($#' rat$n6 %, #"+t-'r
U+'r+ N. ) r'+.n!'nt P'r#'nta6'154
Excellent '0 '0
&ood +? +?
<verage '$ '$
3oor $2 $2
Tta&
"$$ "$$
S"r#': 3rimary .ata F$6-<.3

In)'r'n#'
The performances of Idea mobiles unit in the eyes of the customers areG
@17 are e>cellent& 357 are good& @=7 are average And 47 are poor6
Ta%&'-<.<
A8ar'n'++ ) I!'a M%$&'.
U+'r+ N. ) r'+.n!'nt P'r#'nta6'154
Driends C 8elations '2 '2
=ompany executive "0 "0
-yself 2+ 2+
,thers $5 $5
Tta& "$$ "$$
S"r#': 3rimary .ata F$6-<.<

In)'r'n#'+
<s per in survey it is very glade to know that more than half of the total customers have
enrolled on their own due to their access to the modern media advertisement.
'riend & relatives leaving very least part for the company e>ecutives persuade @476
Ta%&'-<.9
Sat$+)a#t$n ) #"+t-'r+ r'6ar!$n6 I!'a M%$&'.
O.$n$n
N. ) r'+.n!'nt P'r#'nta6'154
Satisfied ?" ?"
>ot satisfied '$ '$
Indifferent # #
Tta&
"$$ "$$
S"r#': 3rimary .ata F$6-<.9

In)'r'n#'
<ccording to the table the satisfaction level of the customer regarding in India Idea
-obile.areGSatisfied is ?"@ ,>ot satisfied is '#@.
Ta%&'-<.= An! F$6-<.=
O.n$n a%"t I!'a M%$&'.
4etter than other company 5' +$@
Same as other company ++ 22@
6orse than other company + 2@
TOTAL >2 1225

<.9 SUMMARY OF FINDINGS
-odern marketing is customer oriented. The study on customer service and
satisfaction is very essential for every marketing to make any decision.
<fter studying the various market surveys we found that
>eed to spend more on advertising.
>eed to conduct <gent oriented seminar.
The communication skill of the D,S to be improved.
To provide better service of billing department.

To be polite while dealing with customers.
T*' )&&8$n6 ar' t*' -a/r )$n!$n6 ) t*' +t"!,
". Drom the study it was found that the customers are not satisfied of the billing service
which the bill is not received on the time.
"7 =ustomers are rarely enthusiastic to pay the bill due to the delay of bill and added of
services due which consumer got burden and not willing to pay the full payment.
'7 It was found from the study that a percentage of population who are illiterate likes
drivers, veg-sellers etc. which are not aware about the real world.
57 In survey consumer behaviour is even changing. It differs from person to person
according to while in payment of bills. <nd customers are keep changing their address
which customer came or real world should take the responsibilities of those customer
while consumer change their address.
+7 Satisfaction level of the customer is an inconsistent phenomenon. < consumer is hardly
satisfied of the billing while to the network most of the consumers are satisfied.
27 =ustomers who are illiterate, it9s difficult to read the bills in English for the
reason they are not regular for the payment of bills.
17 6e are on the age of the new technologies on line servicing has become a very
popular hand for the customers as well as for the company. Idea =ellular *td. has
many real worlds which most of them paying in real world. 4ut the study revealed that
the customer who are illiterate they are never try to go as well as much aware of the
services of real world.
?7 -ost of the customers 2#@7 approximately believe that the D,S should collect the
bills from the resident.
07 -ost of the customers are duly satisfied with the services provided by the Idea =ellular
*td. where as few are having some reservation.
This could be due to
4usy >etwork
*ate <ctivation
4illing problems
Iigh changes

#7 =ompany should send sms in local language as well as in Iindi and English which is
convenient to every customers and awareness of the schemes and services provided
by Idea =ellular *td.
"$7<ttending to the complaints and solving the ;uarries of the customer is also a factor of
serving. <s per the study it was focused that most of the ;ueries and complainers of
the customers are not solved which is very drawback for company and I got few
customers.
""7 The customers have good expectations from the company. .ifferent customers have
different character of activities% some of the customer9s behaviour is very good with
D,S and while others are narrow minded. In survey there are customers who are
using Idea =ellular *td. of another person few of them are hard. <nd the last
conclusion in survey is that the customers who are from slum areas. These addresses
are found and keep changing the places as well as the student who are holding the
Idea =ellular *td.
"'7Drom the study it was found that the customers are not satisfied of the billing service
"57=ustomers are rarely enthusiastic to pay the bill due to the delay of bill and added of
"+7It was found from the study that a percentage of population who are illiterate likes
drivers, veg-sellers etc. which are not aware about the real world.
"27In survey consumer behaviour is even changing. It differs from person to person
"17Satisfaction level of the customer is an inconsistent phenomenon. < consumer is
hardly satisfied of the billing while to the network most of the consumers are satisfied.
"?7=ustomers who are illiterate, it9s difficult to read the bills in English for the
"076e are on the age of the new technologies on line servicing has become a very
popular hand for the customers as well as for the company. Idea has many real worlds
which most of them paying in real world. 4ut the study revealed that the customer who
are illiterate they are never try to go as well as much aware of the services of real
world.

"#7Drom the study it was found that the customers are not satisfied of the billing service
'$7=ustomers are rarely enthusiastic to pay the bill due to the delay of bill and added of
'"7In survey consumer behaviour is even changing. It differs from person to person
''7Satisfaction level of the customer is an inconsistent phenomenon. < consumer is
hardly satisfied of the billing while to the network most of the consumers are satisfied.
'57=ustomers who are illiterate, it9s difficult to read the bills in English for the

CHAPTER-9
SUMMARY AND CONCLUSIONS
9.1 SUMMARY OF LEARNING ENPERIENCE
-odern marketing is customer oriented. The study on customer service and
satisfaction is very essential for every marketing to make any decision.
A)t'r +t"!,$n6 t*' (ar$"+ -arA't +"r(',+ 8' )"n! t*at
>eed to spend more on advertising.
>eed to conduct <gent oriented seminar.

The communication skill of the D,S to be improved.
To provide better service of billing department.
To be polite while dealing with customers.
9.2 CONCLUSIONS AND RECOMMENDATIONS
=ustomer is the king of the world. It holds good even today and will be more so in the
highly competitive days ahead.
In 4angalore mainly in the East-zone market where the study was conducted is generally
market for S-E9s. These small and medium enterprises are less productive but highly
potential and are generating more revenue for the services. 4y improving the coverage along
with the call clarity and comparatively lesser tariffs, Idea can capture
Iigher market share and excel in the highly potential S-E sector.
4ased on the analysis and interpretation of the primary data which is given by '$$
allocation of customers data collected from "$$ customers in 4angalore city, the following are
the recommendationsG-
To understand the current demand of the customer, Idea =ellular *td.
should conduct regular market survey.
<dvertisement should be done to cater the new market segments and
attract customers.
3rovide TTS* to new customer which should address the customer needs.
The front office executives should be professional in their approach in
handling tricky customers.
Training should be given to <gents and D,S on customer relationship management
which should help them to provide better customer services.

APPENDIN
EUESTIONNAIRES:
D'ar S$rMMa!a-

I AMAR NATH YADAV student of MBA1M0U4 In!"+tr, Int'6rat'!
3rogram of 0r".an$!*$ In+t$t"t' O) Mana6'-'nt An! E!"#at$n? 4angalore
and conducting a -arketing 8esearch on J,ver all customers9 feedback
regarding I!'a C'&&"&ar Lt!. in 4angalore cityK. I kindly re;uest you to fill this
;uestionnaire. <nd I assure that the information is purely used for the academic
purpose only.
X>oteG 3lease tick any one option in the bracket for every ;uestionY
14 P'r+na& !'ta$&+
>ameG ZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZ
,ccupationG ZZZZZZZZZZZZZZZZZZZZZZZZZ
-ob >oG ZZZZZZZZZZZZZZZZZZZZZZZZZZ
24 7*$#* tar$)) .&an ," +"%+#r$%' .r'+'nt&, $n I!'a C'&&"&arL
a7 0$$ day plan X Y b7 5+# 8,( plan X Y
c7 '+# - - X Y d7 '+# 4*.E<9s Scheme X Y
34 H8 ! ," rat' ,"r+'&) a+ a #"+t-'rM+"%+#r$%'rL
a7 corporateAsem X Y b7 4usinessmen X Y
c7 Student X Y d7 &ovt servant X Y
<4 7*$#* )a#tr -a!' ," t +"%+#r$%' t*' .r'+'nt .&anL
a7 8oaming charges X Y
b7 *ow call rates X Y

94 Ar' ," +at$+)$'! 8$t* t*' .r'+'nt .&anL
a7 )es X Y b7 >o X Y
=4 Ha(' ," 6t a..r.r$at' $n)r-at$n a%"t tar$))+ !"r$n6 ,"r
+"%+#r$.t$nL
:4 Ar' ," +at$+)$'! 8$t* t*' %$&& +,+t'-L
>4 Ar' ," +at$+)$'! 8$t* t*' %$&& !'&$('r,L
;4 Ar' ," +at$+)$'! 8$t* t*' '-.&,'' %'*a($r $n t*' T'&'+*.L
124 Ar' ," +at$+)$'! 8$t* t*' ra-$n6 )a#$&$t, an! #*ar6'+L
114 Ar' ," +at$+)$'! 8$t* t*' STD #a&& rat'+L
124 Ar' ," +at$+)$'! 8$t* t*' #a&& #n)'r'n#$n6 )a#$&$t,L
134 7*at $+ ,"r ('ra&& )''&$n6 a%"t t*' I!'a C'&&"&arL
a7 <bove my expectations X Y
b7 <s per my expectations X Y c7 4elow my expectations X Y
1<4 7*at ar' ,"r .r%&'-+ .r'+'nt&, )a#$n6 8$t* I!'a C'&&"&ar +'r($#'+L
"7 ---------------------------------------------------------------
'7 --------------------------------------------------------------------

194 7*at 'Itra )'at"r'+ ! ," 8$+* t *a(' )r- C'&&"&ar +'r($#'+L
"7 ----------------------------------------------------------------------------------
'7 -------------------------------------------------------------------------------------
57 -------------------------------------------------------------------------------
Dat': OOOOOOOOOOO S$6nat"r'
BIBLIOGRAPHY

BA+ R')'rr'!
-<8(ETI>& -<><&E-E>T : 3hilip (otler
I!-<> 8ES,!8=E -<><&E-E>T : <swathappa
D!>.<-E>T<*S ,D -<8(ETI>& : Stanton,6illiam et al
>ewspapers : The Times ,f India
-agazines : ,utlook
6ebsites : 888.$!'a #'&&"&ar.#-?
888.66&'.#-
In!$aO#'&&"&'r.#-
888.a!$t,a%$r&a6r"..#-

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CHAPTER-1

It is 0$ @ descriptive because the study contains descriptive of the customers profile

Draming the ob:ectives

3reparing Suestionnaire based on ob:ective

<nalyzing the data collected.

&iving recommendations based on findings.

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