BALANCE SCORE CARD ON TELECOMM SECTOR

BY: Deepshikha Mewati Hemant Guhe Sandeep Kumar Siddharajsinh Rana Tushar Fegde

UNDERSTANDING BALANCE SCORE CARD

Translates an organization`s mission & strategy
..set of performance measures that provides the framework for implementing its
strategy
Focuses on Finanacial & Non-financial performance to evaluate short run & long
run performance
Measures an organization`s performance from 4 perspective financial customerintern
al business process ..learning & growth

The Balanced Scorecard

Oxford University Press 2008. All rights reserved.
3

INTRODUCTION
The Indian Telecommunications network with 110.01 million connections is the fif
th largest in the world and the second largest among the emerging economies of A
sia. It is the fastest growing market in the world

Estimated contribution of nearly 3% to Indias GDP.

According to the Telecom Regulatory Authority of India (TRAI), the total number
of telephone connections (mobile as well as fixed) had touched 385 million as o
f December 2008, taking the telecom penetration to over 33 per cent.
Largest in the world and the second largest among the emerging economies of Asi
a.
The Indian telecom industry has been growing rapidly at a CAGR of 40.63 per cent
from 2003 to 2008. Telecom sector contributed 3.4 per cent to Indias gross domes
tic product in for the year 2008 and is expected to contribute 5.4 per cent by 2
010.
The (GSM) and Code Division Multiple Access (CDMA). There are primarily 9 GSM an
d 5 CDMA operators providing mobile services in 19 telecom

Products offered by the telecomm sector

Some of the products which are being offered :

Prepaid
Postpaid 3G phone
Magic Box handsets World Calling Cards
Gulf Calling Ca
rds Home Calling cards
Recharge home calling cards online
pco
Data Card
Business
Solution

FINANCIAL PERSPECTIVE
GDP growth rate - Averaged around 7.9 % from 20022008 Rising Tele-density Target
of 45% by 2010 Growing per capita income/disposable Income Falling Handset Pric
es Moderate inflation levels which were prevalent during the past 7 years around
5-6%...right now its almost nil.

Market share of major players

Name of company Bharti Airtel Total no of subscribers % Market
2808277
32.57
Vodafone-Essar
BSNL IDEA Aircel Reliance Comm MTNL BPL All India
2848096
2,503,169 1504186 1,001,363 92097 91027 10848215
23.85
16.19 14.92 6.41 3.86 1.45 0.75 100
Reliance figures are based on notional subscriber base and do not include increm
ental increases and expansion in new markets

Internal perspective
Focuses on internal operations that create value for for customers there by incr
easing shareholders value Co-relating the operation with strategy
product or cost
differentiation Differentiation in terms of quality..such as signal strength, ca
ll drop,roaming, call rejection ..
Response time at the customer care
generating revenues fron non voice services such as GPRS,Edge technology,

 Idea Cost leadershiphigh response time .. Vodafone blend of both Focusing on lower
call tariffs..there by increasing

AMOU & ARPU Stats

Minutes of Usage per Month Mobile Services
USA
838
India China
461
303
Despite a low teledensity of approximately 19 percent, India has the second high
est minutes of usage per month. This offers huge growth opportunity to telecom c
ompanies.
Russia
88
ARPU * in India Mobile Services
10 8 ARPU (USD per month) 6 4 2 0 Q 1 2006 Q2 2006 Q3 2006 Q 4 2006 Q1 2007 GSM
CDMA
The declining ARPU implies that India Inc. is tapping a large market at the bott
om of the pyramid by reducing tariffs; thereby, enhancing affordability.
GROUP 7
10

LEARNING AND GROWTH PRESPECTIVE

OBJECTIVESMEASURES INITATIVES
Align employee and Organization goals Employee-satisfaction rating Employee part
icipation and suggestions program to build teamwork
Empower workforce
% of line workers Have empowered to supervisors act manage processes as coaches
rather Develop process % of employee than decision Employee skill trained in pro
cess makers training Enhance information system capabilities and quality % of ma
nagement manufacturing processes with real-time feedback programs Improve online
and offline data gathering

 Continuosly increasing services bringing new tariffs .launching of 3G services Cha

nge in Employee Turnover Ratio due to new Telecom players Employee empowerment E
mployee Satisfaction Employee Training of new services offered by the company

Changing DemogrIIIIaphics
D e m a n d fo r V A S & B ro a d b a n d se rvi s A m o n g ce Yo u th 28 % Urban
Population Rapid Urbanization Rising Income level

Source: Mckinsey Report

Technology
CDMA Already there are big players in this segment Reliance , Tata 3G Value adde
d services potential still to be tapped fully 2G/3G GSM Currently commands 70% o
f mobile subscribers in India

CUSTOMER PERSPECTIVE
To satisfy customers to generate more revenue Goal::
Provide quality customer service(handling queries) Timely information(about tari
ffs) Good Network
Measures::
Feed back(about billing services & queries handled) - Will lead in increased Mar
ket share