A

PROJECT REPORT

ON

“EMPLOYEES & VENDORS PAYMENT MANAGEMENT SYSTEM”

FOR

M T S
SISTEMA SHYAM TELESERVICES Ltd.

SUBMITTED TO

NORTH MAHARASHTRA UNIVERSITY

in partial fulfillment of two years full time masters degree in business administration (MBA)

SUBMITTED BY

PREM KR. SINHA

(BATCH : 2009-2011)

DEPARTMENT OF MANAGEMENT STUDIES

NORTH MAHARASHTRA UNIVERSITY

JALGAON-425001
 M T S
SISTEMA SHYAM TELESERVICES LTD.

ABDUL HAI COMMERCIAL COMPLEX,EXHIBITION RD.PATNA.- 8000001, FAX – (020)27272766,

Ref.No. DATE:

TO WHOMSOEVER IT MAY CONCERN

This is to certify that Mr. PREM KUMAR SINAH a MBA Student of Department of management studies,

North Maharashtra Univesity, Jalgaon, Maharashtra has undergone training and completed a project on

“EMPLOYEES AND VENDOR PAYMENT MANAGEMENT SYSTEM” in Bihar- Jharkhand region.

He has carried out this project for M T S (Sistema Shyam Teleservices Ltd.) from 010/05/2010 to 30/06/2010.

In the span of project duration his candidature was found to be very sincere & hardworking.

We wish him a bright future.

(sign)
Mr. Sanjeev Kr. Sinha
Head Of Finance Dept.
M T S. Patna

Seal
DECLARATION:

I, PREM KUMAR SINHA, hereby declare that the Project entitled “EMPLOYEES AND VENDORS PAYMANT
MANAGEMANT SYSTEM” carried out at M T S (Sistema Shyam Teleservices Ltd.) is a genuine work for the
fulfillment of Master in Business Administration of Department of Management Studies, North Maharashtra
University, Jalgaon (M.S.) and will be solely for the academic purpose.
To the best of my knowledge any part of this context has not been submitted earlier for any degree, diploma or
certificate examination.

Signature and Name of the Student

ACKNOWLEDGEMENT:
I readly acknowledge my indebtedness to the finance department of M T S (Sistema Shyam Teleservices Ltd.) in
which I did my summer training. I am grateful to FR Head ‘Mr. Sanjeev Kr. Sinha’ who gave me golden opportunity to
do training in the channel. I am also grateful to him for motivating and encouraging me at every step. I deeply extend
my gratitude and appreciaton to Ms. Kanupriya, Senior lead Finance dept. (under whom Idid my training) whose
support, dedication and honest effort have given me an immense help in preparing this project. I am also highly
thankful to Mr. Amit kumar and Mr. Deepak Sharma whose valuable knowledge, encouragement and suggestions
gave backbone support in completing this project. At last my special thanks to all the employees of finance department
of MTS (Mobile Telecom Services) for giving confidence and strength to initiate this venture.
Executive Summary
The purpose of this report is to summarize the activities I undertook as part of my summer
internship at Sistema Shyam Teleservices Ltd. I had to work in coordination with the company‘s
finance team to understand the commercial activities in Bihar -Jharkhand region.
In this report I have given a brief picture of the Indian telecom industry to demonstrate the
potential for growth for MTS as a player in this field. I have also depicted the current standing of
MTS on the horizon of Indian Telecom industry
I have also narrated our experience of this two months worth of interaction with different finance
Executives and the seniors working in MTS in Bihar Jharkhand region.
I have done a SWOT analysis of the brand and compared it with its peers. I, based on my experience,
have come up with my own conclusions that I feel might be useful to the company, in whatever
little way, in promoting MTS business.
INDEX
1.
Industry Overview………………………………………………………………..… 6
2.
Company Overview………………………………………………………………... 13
3.
Analyses
a.
Porter‘s Five Forces Model………………………………………………… 17
b.
PEST Analysis…………………………………………………………….... 19
c.
SWOT Analysis…………………………………………………………….. 22
d.
BCG Matrix……………………………………………………………….... 25
e.
Ansoff Matrix……………………………………………………………..... 26
4.
Data cards – scope and prospects…………………………………………………… 28
5.
Corporate Strategy………………………………………………………………...... 29
6.
Product Description………………………………………………………………… .30
7.
Peers Analysis ………………………………………………………………………. 31
8.
Project Description
a.
Overview……………………………………………………………………. 35
b.
Market Feedback…………………………………………………………..... 44
c.
Opportunities……………………………………………………………....... 44
d.
Challenges…………………………………………………………………... 44
e.
Learning………………………………………………………………………45
9.
Recommendation…………………………………………………………………..... 46

11.
10. Analysis Method…………………………………………………………….……………..48
Methodology & Procedure of work………...……………………….……………………..47
1.
Industry Overview:
The Indian telecommunications industry is one of the fastest growing in the world and India is
projected to become the second largest telecom market globally.
According to the Telecom Regulatory Authority of India (TRAI), the number of telecom
subscribers in the country increased to 562.21 million in December 2009, an increase of 3.5 per
cent from 543.20 million in November 2009. With this the overall teledensity (telephones per
100 people) has touched 47.89.

According to Business Monitor International, India is currently adding 8-10 million mobile

subscribers every month. It is estimated that by mid 2012, around half the country's population

will own a mobile phone. This would translate into 612 million mobile subscribers, accounting

for a teledensity of around 51 per cent by 2012.

Moreover, according to a study conducted by Nokia, the communications sector is expected to

emerge as the single largest component of the country's GDP with 15.4 per cent by 2014.
7
With the availability of the 3G spectrum, about 275 million Indian subscribers will use 3G-
enabled services, and the number of 3G-enabled handsets will reach close to 395 million by
2013-end, estimates the latest report by Evalueserve.
According to a Frost & Sullivan industry analyst, by 2012, fixed line revenues are expected to
touch US$ 12.2 billion while mobile revenues will reach US$ 39.8 billion in India.
Telecome industry revenues in US $
State-run telecom operator BSNL has rolled out 3G services in 318 cities with 856,000
subscribers. BSNL has plans to cross 760 cities by September 2010. And even as debate on 3G
continues, TRAI has started consultation on the next level of telecom services. Fourth generation
or 4G offers download at faster speeds.

8
Telecommunication industry is mainly classified into two sub headings – voice and data. Voice
service can be provided through either wire-less or wire-line. Wire-less segment is booming
nowadays after investment of foreign companies. The major players in this field are Bharti,
Vodafone, Reliance, BSNL etc.
Market share of Basic Services in
India

8%
Wireless
Wireline
92%
MTS operates in wireless segment, and in this segment the two technologies available are: GSM,
and CDMA. GSM is prominent in India and has better margin than CDMA. MTS runs on the
CDMA technology, which is faster than GSM and is a newer technology. In CDMA big players
are Reliance and TATA.
Indian Mobile Services
Market Share
(As of June 2009)
CDMA

46%
GSM
54%

9
The second major source of revenue is internet. The use of internet is increasing and quite a

number of consumers are switching from wired-lines to wireless connections. But still wired

lines are preferred by a majority of consumers as it is cost affective and provides better

connectivity.

10
Value-Added Services Market
Currently mobile value-added services (MVAS) in India accounts for 10 per cent of the
operator's revenue, which is expected to reach 18 per cent by 2010. According to a study by
Stanford University and consulting firm BDA, the Indian MVAS is poised to touch US$ 2.74
billion by 2010. MTS can couple its wireless broadband services with different value added
schemes to make the product more attractive to the user.
Major Investments
The booming domestic telecom market has been attracting huge amounts of investment which is
likely to accelerate with the entry of new players and launch of new services.
The government has approved the foreign direct investment proposal of the Federal
Agency for State Property Management of the Russian Federation to buy 20 per cent
stake in telecom service provider Sistema-Shyam for US$ 660.1 million.
Reliance Infratel, the tower subsidiary of Reliance Communications (RCom), will build
56,596 telecom towers by financial year 2010, increasing the total number of towers to
100,000.
BSNL, India's leading telecom company in revenue terms, will put in about US$ 1.16
billion in its WiMax project.
Vodafone Essar will invest US$ 6 billion over the next three years in a bid to increase its
mobile subscriber base from 40 million at present to over 100 million.
Norway-based telecom operator Telenor has bought a further 7 per cent in Unitech
Wireless for a little over US$ 430.70 million. Telenor now holds 67.25 per cent. Last
year, it had bought a 60 per cent stake for US$ 1.23 billion.
11
Policy Initiatives
The government has taken many proactive initiatives to facilitate the rapid growth of the Indian
telecom industry.
100 per cent foreign direct investment (FDI) is permitted through the automatic route in
telecom equipment manufacturing.
FDI ceiling in telecom services has been raised to 74 per cent.
Introduction of a unified access licensing regime for telecom services on a pan- India
basis.
Introduction of mobile number portability in a phased manner, starting in the fourth
quarter of 2008.
The government is implementing a program of connecting 66,822 uncovered villages
under the Bharat Nirman programme.
The Road Ahead
The target for the 11th Plan period (2007-12) is 600 million phone connections with an
investment of US$ 73 billion. Apart from the basic telephone service, there is an enormous
potential for various value-added services.
According to the CII Ernst & Young report titled 'India 2012: Telecom growth continues',
revenue from India's telecom services industry is projected to reach US$ 54 billion in 2012, as
against US$ 31 billion in 2008.
12
2. COMPANY OVERVIEW:
Sistema Shyam TeleServices Ltd. — Sistema`s subsidiary in India, joint venture of JSFC
Sistema and Shyam Group of companies. Mobile TeleSystems OJSC (MTS) is the largest mobile
phone operator in Russia and the CIS. MTS services over 91.33 million subscribers (as of July
31, 2008). MTS provides mobile communications in Russia, Ukraine, Uzbekistan, Turkmenistan,
Armenia and Belarus, the territory with a total population of more than 230 million. MTS ranks
as the 8th largest operator in the world by proportionate subscriptions at the end of 2007
Sistema Shyam TeleServices Ltd. was founded in 1998 (original name – Shyam Telelink Ltd.)
and started full-scale business in Rajasthan in 2000. Sistema is the majority share holder in this
joint venture with a 73.71% equity stake, along with the Shyam Group, holding a 23.79% stake
and the remaining 2.5% being held by the public.
The company obtained its pan-India license for provision of mobile services in March 2008 and
at present has enough spectrum to provide mobile telephony services in 22 telecom-circles,
covering India‘s 28 states and 7 union territories, with a population of 130 million. With the
launch in Andhra Pradesh, SSTL will have expanded to 12 telecom circles. The other circles are
Rajasthan, Bihar/Jharkhand, Kolkata, Rest of West Bengal & Sikkim, Chennai, Tamil Nadu,
Kerala, Karnataka, Mumbai, Maharashtra, Haryana/Delhi & NCR. The high-speed mobile
broadband service, MBlaze, was launched in November 2009 and has seen tremendous market
acceptance with over 70,000 satisfied customers in a short span of time. In April 2010, MTS
launched MTS TV for MBlaze customers.
Sistema Shyam TeleServices (SSTL) is the fastest growing telecom company in the competitive
Indian market, with over 4 million voice subscribers, with about a million in West Bengal alone,
and 70,000 data customers. SSTL has tied up with Mobile TeleSystems OJSC, a JSFC Sistema
company of Russia, to bring the globally acclaimed telecom brand – MTS - to India. MTS is
the 8th largest telecom brand in the world. Millward Brown has recently voted MTS as the 72nd
ranked Brand from among the Top 100 Brands in the world.
The new head office of Sistema Shyam TeleServices is located in Gurgaon – one of India‘s
commercial capitals near Delhi. These new headquarters combine the functions of corporate
office and technology centre, where top management and experts of different divisions are
equipped with the most modern infrastructure to support their work.
Since March 2009, Sistema Shyam TeleServices has been able to use the MTS brand for
advertising and other communication in India as per the agreement signed between the company
and MTS in December 2008. And since its launch, the MTS brand has been successful in every
market it has stepped into.
13
Registered Office:

Sistema Shyam TeleServices Limited

B-2-D , Shiv Marg , Bani Park
Jaipur ( Rajasthan) - 302016

Corporate Office:
334,
Udyog Vihar,
Phase 4,
Gurgaon, Haryana.

Regional Office's:
New Delhi:
A-60,
Naraina Industrial Phase-1,
New Delhi.
Email us:info@mtsindia.in

Jaipur Office:
B-2-D,
Bachhawat House,
Shiv Marg, Banipark,
Jaipur, Rajasthan.
Email us:info@mtsindia.in

Chennai Office:
E 2 A,
Near Fire Station,
Phoolbagh Chowk,
Chennai, Tamil Nadu.

Kolkata Office:
P.S. Srijan Tech Park,
9th Floor,
DN-52, Sector V,
Saltlake City, Kolkata- 7000

14
 COMPANY VISION, MISSION & VALUES

Vision
MTS shares common values with people who know what they want to achieve in their lives and are full of energy
to hit their goals.
"We empower people to pursue their purpose in a modern networked world."

Mission
"MTS customers can actively shape their lives anytime and anywhere with a range of innovative telecom products
and services."
We offer people greater choice and inspiration in how they spend their most valuable assets: their time and
energy.

Our Values

Delivering Excellence

We serve our customers by delivering the best. We believe in meeting or exceeding our customer’s
expectations by utilizing our resources while adhering to best in class processes and quality standards. We
articulate our goals clearly and align our strategies, resources and assets to deliver excellence. This we believe
translates into superior value for our customers and stakeholders.

Mutuality

We believe shared and reciprocal benefits around common objectives help us meet our quality commitments. We
work with our colleagues and business partners to deliver the highest value for our customers. We build
supportive relationships and ensure fair returns to all who help us achieve our goals. We inspire trust in our
relationships by keeping long term success of all parties in mind.

Entrepreneurial Spirit

We demonstrate ownership to meet our commitments by acting like co-owners. Every day we deliver our best by
assuming complete responsibility and by being passionate about our goals. We encourage and reward those who
look for ways to improve the current and search for the new.

Inspiration to be a Doer

We believe in people, their abilities and potential. We support them to deliver under different conditions and
unleash their talent. We do everything possible to help every member of our organization become a doer, a role
model and inspiration to all. Our environment promotes risk taking, innovation, agility and responsiveness.

15
 COMPANY LOGO:

COMPANY SLOGAN: “ Badlo life ka plan”

16
3.
Analysis
a. Porters’ Five Forces Model:
Power of
Suppliers
Threat of
Compititive
Power of
New
Rivalry
Buyer
Entrance
Availability
of
Substitutes
Threat of New Entrants (Moderate):
It comes as no surprise that in the capital-intensive telecom industry the biggest barrier to entry is
access to finance. To cover high fixed costs, serious contenders typically require a lot of cash. In
addition, it is important to remember that solid operating skills and management experience is
fairly scarce, making entry even more difficult. But still Threat of new entrants is always there
for any company, MTS itself being a new entrant in the field of wireless broadband services.
17
Power of Suppliers (Low):
At first glance, it might look like telecom equipment suppliers have considerable bargaining
power over telecom operators. Indeed, without high-tech broadband switching equipment, fiber-
optic cables, and mobile handsets and billing software, telecom operators would not be able to do
the job of transmitting voice and data from place to place. But there are actually a number of
large equipment makers around. There are enough vendors, arguably, to dilute bargaining power.
MTS will have a variety of suppliers to choose from, because most of the suppliers would be
eying to get the contract to be the supplier of the company.
Power of Buyers
(High):
Lack of differentiation amongst the service providers has led to sort of commoditization of the
product. MTS provides the same service as others provide, this lack of differentiation gives
customer an edge to bargain with service providers, they can switch to any other provider any
time they want. Fierce competition among the competitors also offers a great deal to bargain. As
the switching cost is also very low, all these situations are creating problems in the growth of
company.
Availability of Substitutes
(High):
Products and services from non-traditional telecom industries pose serious substitution threats.
Cable TV and satellite operators now compete for buyers. The cable guys, with their own direct
lines into homes, offer broadband internet services, and satellite links can substitute for high-
speed business networking needs. The threat of the substitutes for MTS is very high in Indian
market as the already existent players have a huge market share and better brand perception
among the consumers, making it tough for MTS to win the trust of its customer and increase its
market share.
Competitive Rivalry (High):
Competition is "cut throat". The wave of industry deregulation together with the receptive capital
markets paved the way for a rush of new entrants. New technology is prompting a raft of
substitute services. Nearly everybody already pays for phone services, so all competitors now
must lure customers with lower prices and more exciting services. This tends to drive industry
profitability down. In addition to low profits, the telecom industry suffers from high exit barriers,
mainly due to its specialized equipment. MTS will face a cut throat competition from its well
established competitors – such as Reliance and Tata – that are already there in the CDMA
market.
18
b. PEST ANALYSIS:
It is a systematic examination of all 4 levels of the environment with at least three purposes:
Detecting important economic, social, cultural, environmental, health, technological, and
political trends, situations, and events.
Identifying the potential opportunities and threats for the institution implied by these
trends, situations, and events.
Gaining an accurate understanding of your organization‘ s strength and limitations.
A PEST analysis of the macro environment indicates that economic (a phone call being a
cheaper way to stay in touch than outstation travel for example) and social factors (working
outside the home town) have forced the pace of utilization of technology (Public Call Offices,
mobile phones, networked companies).
Increasing customer awareness has raised expectations and vocal demands are being articulated
for consumer rights; such political factors have in turn impacted the competitive environment by
way of entry of private players, independent regulation, and a policy framework tilted towards a
level playing field for new entrants.
19
Political factor
High entry fees in 3G market
In India legal obligations are there regarding 3G auction and bidding which limits
it to the existing players and not available to the new entrants this political factor forbids
the MTS entry in to 3G services.
Reduction in tariff plan
Earlier the tariff rates were higher due to high taxes, but now it has become lowest
in the world by tax reforms.
Extension of license period
Government has replaced the license fees with revenue sharing scheme and
extended the license period from 10 year to 20 years. A company can merge with another
operator only after 3 years of receiving license. This rule can be eased to help MTS
merge with established players.
Economical factor:
India is one of the most vibrant and fastest growing telecom market in the world enjoys the
steady growth rate of 10 million mobile users every month .India has a moderate but still a
healthy growth rate which will provide a good base for MTS to grow with growing economy.
Social factors:
Perception of new entrant in the market
As MTS is a new brand in the Indian market it will be facing problems regarding
the perception of a new entrant, this image will adversely affect the buying capacity of
customers, they will think about the network, and the kind of service they will get after
sale.
20
Social status
Anything customers buy that reflects their social status, as MTS doesn‘t have a
reputation in this market although it has a strong customer base in Russia and a great
image of its products, people will be conscious about their social status this will affect
company‘s growth adversely.
Technological factor:
The business in a country is greatly influenced by the technological development. The
technology adopted by the industries determines the type and quality of goods and services to be
produced and the type and quality of plant and equipment to be used.
As MTS has seen its competitors and the kind of technology being used by them, so company is
aiming to come up with something new that is not been available to its competitors. MTS use its
technology in many ways they have.
MTS Connect service provides a simple and convenient access to the Internet through the
technology of data transfer GPRS/EDGE.
21
c. SWOT ANALYSIS
Strengths of the company
Weaknesses of the company
Experience in Russia
New entrant in Indian Telecom market
Pan India presence
Least Brand Recall in Customer‘s mind
in India
Low tariff plan
Less Promotional Activities
Innovative schemes
Parent company is financially sound
Opportunities for the company
Threats for the company
Competition from other cellular‘s
Latest technology and low cost
Less product awareness in the market
advantage
Brand perception
Huge market
Strengths of the company:
Experience in Russia:
MTS is having a huge experience in this field of business as they have been showing their
presence since 1993 and a great customer experience in Russia and in other countries.
Experience of MTS will help them to plan their strategy for Indian market accordingly.
Pan India presence:
MTS is going to offer the most expansive roaming network. Letting you roam anywhere in
India with its Pan-India presence, and trot across the globe with Inter national Roaming
spread in over the networks. The mobile services group provides CDMA mobile services
across India in 11 telecom circles.
Low tariff plan:
MTS is coming with one of the cheapest tariffs in telecom sector by providing ½ paisa
second call and in some region plan gets even cheaper ½ paisa 2 seconds. MTS launched a
very different and attractive scheme i.e. 100000 minute free talk times with every new
connection. Its tariff plans for internet data cards is also cheapest in India.
22
Innovative schemes:
MTS have launched a special bundle offer for data cards with HP and HCL laptops at
subsidized prices. It also have launched a special offer, wherein a MTS mobile customer can
make unlimited outgoing calls to any MTS mobile within the state for 999 days just by
paying 999 rupees.
Parent company is financially sound:
Sistema is a Russian conglomerate. And it has a plenty of cash to invest further as backup.
Weaknesses of the company
New entrant in Indian Telecom market:
As MTS is a new entrant in the Indian telecom sector, not having a good customer base, it
will face a cut throat competition from its competitors.
Least Brand Recall in Customer’s mind in India:
As the company is a new entrant in the Indian cellular market, customer will have a
perception of bad network and not a good customer service.
Less promotional activities:
ATL Advertisements are done very rarely, as compared to other players of the same industry
like, Reliance, Tata and Vodafone.
Opportunities for the company
Latest technology and low cost advantage:
MTS can enjoy its latest technology and low cost advantage. The number of cities, towns and
villages it has covered already works to its advantage as putting more base stations for
cellular coverage in these areas comes with negligible marginal cost. Besides such cost
advantages, it has also other cost advantages for the latest cellular technology.
23
Huge market:
The cellular telephony market is presently expanding at a phenomenal rate every year and
there is still vast scope for MTS to enter & expand in this market. Besides
there is a vast rural
segment where the cellular services have not made much headway and many customers are
looking towards MTS for providing the service to them. With its presence even in the
remotest areas, MTS can
gain a big market share in this segment.
Other opportunities:
India is the second-largest telecommunications market in terms of sheer numbers of potential
subscribers, and one of the fastest growing in the world. MTS can cover all the 22 telecom
circles of India through its adequate strategies and investment in network coverage.
Threats for the company
Competition from other cellular’s:
It is time for MTS to expand its cellular services. Fierce competition is already in place with
the markets ever abuzz with several tariff reductions an announcement of attractive packages,
trying to grab most of the mind share of the king – the consumer , whose benefits are
increasing with passing of everyday.
If MTS will not be innovative and agile, its cellular service will be a flop. It needs to be
proactive with attractive packaging, pricing and marketing policies lest its presence in the
market be treated with disdain by the private cellular companies. The launch of WLL
services by Reliance communication has aggravated the situation.
Less product awareness in the market:
To make its presence felt in the market, MTS should launch different promotion and
advertisement activities.
Brand perception:
Building a strong brand image will help the company grapple with competition from well
known names like Reliance and Tata.
24
d. BCG Matrix
MTS lies in Question marks category because its market growth is high but its current market
share is low. Company has a chance to move towards Star category if it is able to increase its
relative market share significantly.
25
e. ANSOFF MATRIX
The company should follow the four strategies depending on the demand and product as
indicated in the matrix.
Market penetration:
Market penetration is the name given to a growth strategy where the business focuses on selling
existing products into existing markets.
As it is been clear from the above definition that market penetration is the strategy were
company try to maintain their share in the existing market with their existing products .
As MTS is a new entrant in the Indian cellular market, so they are not into the market penetration
strategy. But in Russia they are following this strategy of market penetration.
26
Market development
Market development is the name given to a growth strategy where the business seeks to sell its
existing products into new markets. As MTS has target a new market for its product so they are
following the market development strategy in which they have exported there product to India.
Company has already made its presence in Uzbekistan, Belarus, Russia, Ukrain, Armenia, and
Turkmenistan and now in India.
Product development
Product development is the name given to a growth strategy where a business aims to introduce
new products into existing markets. About product development we are not sure whether they
follow the product development strategy or not.
Diversification
Diversification is the name given to the growth strategy where a business markets new products
in new markets. About this strategy also we are not sure whether they will go for it or not as they
providing existing service all over the world.
27
4. Data cards – scope and prospect:
With the dawning of the twenty-first century, India has witnessed a drastic change in the way
business is conducted. Business travels across the globe have become commonplace, and this is
gaining momentum with time. India too is on the move and wants to stay connected anytime,
anywhere-whether on a train or bus, in a hotel or conference hall, within India or abroad.
Meeting this need of business travelers are data cards and USB modems that have become the
preferred solution, even before wireless mobile broadband is introduced in the country. In the
age of IT where information is everything, everyone needs to be connected to the web 24X7.
According to the World Travel and Tourism Council, India has become one of the fastest
growing countries in terms of the number of travels made within the country and between
countries, by road and air. And here the communications industry found a profitable business
opportunity.
Growing businesses in all segments, necessity to access emails and corporate applications during
urgent business trips and the urge for some entertainment while on the move are some drivers
increasing the demand for data card usage. Wired-line broadband connections are yet to
penetrate the vast semi- urban and rural parts of the country where entrepreneurs, officials,
students, etc have the need to surf the Internet for various purposes. Though the laptop
penetration in these areas has not made a significant mark, desktop penetration is comparatively
more.
With data cards offering convenient access to the Internet, a number of companies have started to
tie up with service providers to avail bulk network connections for their employees on the go and
allow them to utilize their time during business travels. Since data cards can be used with
desktop also, it cuts down the office infrastructure costs as well. Growth of mobile telephony in
India has created users with specific needs like m-commerce that require wireless Internet,
driving the wireless data card growth. Once the concept of mobile wallet and its applications hit
the market in India in the near future, the wireless data card segment is also expected to witness
an exponential growth.
All major service providers, including Reliance Communications, Bharti Airtel, Tata Indicom,
BSNL, and Vodafone and MTS have launched data cards to tap the vast opportunity lying ahead.
The players are offering data cards and USB modems at competing prices and different tariff
plans to woo customers.
28
5. CORPORATE STRATEGY
MTS aims to be the leading communication operator in India, providing its customers with
mobile and high internet access at home and on the move. For this company is trying to move
beyond the mobile access.
The development of MTS beyond mobile access is part of our strategic initiative 3i .
Company‘s direction is basically based on three main principles:
Integration
Internet
Innovation
Integration
In integration company is basically trying to develop new pipeline‘s and customer touch
points. Company aims to provide comprehensive integrated service portfolio for all of their
customers. Communication needs, through both fixed line and wireless access. The networks and
platforms company is developing will create a seamless and unsurpassed –user experience.
Internet
For internet facilities company is trying to offer universal connectivity to its customers
because customer increasingly expects faster and broader connectivity. Company is trying to
create smarter pipelines so the customers can realize full benefits of today‘s technology and to
compete with other brands.
Innovation
Differentiating MTS from its competitors by of fering a unique mix of products and
services, MTS will offer exclusive devices, distinct packages and services.
29
6. Products offered by MTS:
MTS has three products in wireless broadband segment
1.
Mblaze premium
Plug & Play enabled
Speed up to 3.1 Mbps
Fastest uploads at a speed to up to 1.8 Mbps
Micro SD card slot for data storage
Stylish swivel modem for flexible usage
2.
Mblaze standard
Plug & Play enabled
Speed up to 3.1 Mbps
Fastest uploads at a speed to up to 1.8 Mbps
3.
Mbrowse
Plug & Play enabled
Cutting edge CDMA 1X technology
30
7. PEERS ANALYSIS:
Data-cards satisfy the following needs:
Primary Need: Wireless internet for communication, networking and entertainment.
Secondary Needs : Status, as storage device
Direct competitors: As the primary need of this product is internet on mobile, the direct
competitors would be the product which provides the same service. They are….
Data cards of other companies
GPRS services
The major players in this segment are TATA, Reliance netconect, Airtel broadband services as
given below…..
•Venture of TATA group

•Runs on CDMA technology

•Has same product range MTS

•Has strong brand image and faith for better service

•Venture of Reliance group

•Runs on CDMA technology

•Has same product range as MTS

•Has strong brand image but less faith for service

•Venture of Bharti Airtel

•Runs on GSM technology

•Provides only 1X device

•Has strong brand image but giving less speed becase run on GSM

platform
31
Indirect competitors: This product has feature of providing internet services on move. All other
means by which internet can be avail are the indirect competitors of this product
Dial up connections
Leased lines
Wire line broadband
Cyber café
Wi-Fi
Wi-Max
Other competitors: Main uses of this service are communication, entertainment, information
search etc so below given are other competitors of this service
Magazine
News paper
I pod
TV
32
Approach to competition
MTS is providing A cheaper Tariff plan to attract huge customers in the market and to
increase its Market share. (see table-1)

Prepaid plan comparisons

Free Validity MTS Tata Photon+ Reliance
Usages (in days)
Price Price Difference Price Difference

250MB 30 198 200 2 250 52

350MB 30 248
750MB 30 498 500 2(650MB) 500 2(700MB)
1GB 30 598 700 102 715 117
2GB 30 698 850 152
3GB 30 798 1000 202 935 137
6GB 30 898 1200 302 1210 312
10GB 30 1050 1350 1379 329
15GB 30 1500 2100 1925 425
30GB 30 3000 4200 850
50GB 30 5000 7000 1985
10GB Night 30 595
3GB 90 1794 306 351
9GB 90 2394 606 411
18GB 90 2694 906 936
30GB 90 3150 4050 987
45GB 90 4500 6300 1275
6GB 180 3588 612 702
18GB 180 4788 1212 822
36GB 180 5388 1812 1872
60GB 180 6300 8100 1974
90GB 180 9000 12600 2550
12GB 365 7176 1224 1404
36GB 365 9576 2424 1644
72GB 365 10776 3624 3744
120GB 365 12600 16200 3948
180GB 365 18000 25200 5100
Extra Usage Charges – 50p/MB Top Up Not Available Rs.1/MB

33
 MTS is also offering 10,00,000 free MTS minutes to its new subscribers in order to gain
customer‘s attention in the market and to make their presence felt in the market.

Postpaid Plan Comparisons

Bundled Free MTS Tata Photon+ Reliance
Usage
Monthly Monthly Rental Difference Monthly Difference
Rental Rental
1GB 598 650 52 650 52
2GB 698 750 52 750 52
3GB 798 850 52 850 52
6GB 898 950 52(5GB) 1099 201(5GB)
10GB 1050 1100 50 1250 200
15GB 1500 1500 0 1750 250
10GB 499 499 0
Extra Usages Charges- 40p/MB 50p/MB 50p/MB

3GB Night 99 751 751

10GB Night 199 901 1051
10GB Night 199 901 1051

34
8. PROJECT DESCRIPTION:
a. Overview
As part of the financial activities (employees & vendors) of MTS, I was assigned to interact with VHD
team, document their activities and feedback and suggest ways to decrease the time taken in processing
different bills of employees and vendors.

Initially, I was intimated of the VHD process and its importance in the payment system.

V H D

(vendor help desk)

V H D-is a system under which all kinds of billings related to vivid vendors are brought and processed. Every kind of bill passes
through different desks of concerned depts and finally payment is done. Every desk holds the channelised bill for some stipulated
periods called SLA. The time taken during this process is about 24 to 28 days.

The channel can be prepared like as under-

DESK
SLA
MTSPATNAVHD 2 days
1st user(concerned dept) 3 ,,
User approver II 2 ,,
VHD II approver 1 ,,
Finance (circle finance Bihar) 5 ,,
Transit 3 ,,
Corporate finance 5 ,,
Treasury 2 ,,
Pending for sig. 1 ,,
Dispatch 0 ,,
Paid Bills 0 ,,

24 Days
Vendor help desk (VHD) assists the company in tracking each and every vendor invoice as it travels through
the departments in the company for approvals while monitoring the SLA committed to the vendor for payment.
This is mainly set up to handle large volumes of vendor invoices or as a help to a centralized payable process
running in corporate.
While mostly the VHD is customized to suit the requirements of the clients, however broadly it aims to achieve
the following:

 Centralize the vendor bills receipt/tracking.

 Check invoices for relevant supporting and provide e-mail confirmation to vendors for receipt of
invoice.

 Forward to departments for approvals.

 Forward to finance for cheque preparation.

 Cheque issuance to vendors with details.

 Monitor turnaround time for payment.

 MIS

 Handling all correspondence with vendors.

 TDS certificates and C form request receipt and forwarding to concerned departments.

Typical advantages of setting up the VHD are :-

 Vendor interaction with user, Commercial, Finance for unusual follow-ups is reduced saving time and
energy for core areas.

 Vendor gets one window contact for all the Query resolution.

 Vendor is intimated for invoice receipt on mail so no botheration for giving the physical receiving
resulting in reduced walk-in of vendors, only the invoices which are with all the supporting documents
are entered in system else returned to vendor requiring the complete papers thus entering only complete
invoices in system.

 With the introduction of invoice cover sheet where all the department will mention the amount approved
and brief reason for deduction if any,VHD is able to provide the vendor with actual picture and complete
transaction of invoice value on its own without any follow up by vendor. This also reduces year end
reconciliation's to large extent

 Regular follow up with all the concerned department for raising an alarm as to pending invoices which
are not approved within departmental SLA, Personal follow up with user and if not responded then
escalation to HOD.
36
  Mails to all the department intimating the cheques released for the invoices relating their department.

 Taking the Address Change request from vendors and giving to commercial department for updating in
system so that the cheques are printed with right addresses.

 Vendor Help desk will track the request for TDS and WCT certificates form vendor and forward the
same to respective department and release the certificate with receiving from vendor acknowledging the
same once received for concerned department.

EMPLOYEE PAYMENT:

All employees of MTS in Bihar –Jharkhand region are paid their remuneration through finance channel. All
claimed bills of employees come to finance channel where they are processed and cleared. Finally they are sent
to the corporate office for further processing of cheque preparation and payment.

The work done in employee payment process is as follows:

Maintenance of Take appropriate

Checking of bills Voucher entry of
excel sheeet approvals of the seniors
(making necessary the checked bills
and finance head
deduction according to
company policy )

Sending of excel sheet to the

corporate office for cheque
preparation and payment

37
VENDOR PAYMENT:

Start

Receipt of Invoices with all supporting

documents at the respective locations by the clients

Preparation of Summary Statement/

Tracking Sheet

Courier the Invoices wih relevant

supporting documents & Summary
Statement to Osource Processing Center

Receipt of Invoices at Osource

Verification of Summary Statement vis-à-

vis attached invoices & confirmation of
same to the Client

Entry of Invoices in Osource Web System

Verification of Invoices as per Level – I

Checklist

Compliant with

Level – I Checklist No Rejected Invoices sent back to the

Client with rejection memo

Yes

Level – I Approval

38
 Verification of Invoices as per Level – II

Compliant with Level –

II Checklist Rejected Invoices sent back to
the
No
Client with rejection memo

Yes

Level II Approval

Email to Client Approvers (as per defined Approval

Matrix)

Approval/Rejection of the Invoices in Osource Web

System by Client Approvers

Approval/
Rejection
Rejected Invoices sent back to the
Rejected Client with a rejection memo

Approved

Preparation of Upload File (Text File) for

Approved
Invoices

Upload of Approved Invoices (Text File) in the

Client’s
Accounting System (SAP/Oracle/Peoplesoft or any
other

Matching of Text File Count with Entries Uploaded in

the
Accounting System

Count Tallied

Verification & Upload of Mismatch

No entry

39
Payment Processing
 Invoices Posted in System for Payment Processing

Bank transfer for cheque payment

Both modes Cheque Print Cheques & Provide to the Cleint for
signature
payment
Download of Text File post Payment
Run generated from the Client’s
Accounting System
Bank transfer Post Signature, Dispatch Cheques
to the vendor
Upload of Payment Process Data in Preparation of Bank Transfer Files & Provide
Osource’s Web System to the
Client for Signature

Post Signature, Dispatch to the Bank Update Cheque Details in cheque

register

Handover Physical Documents to the Client

Process completed
Invoice payment and its processing:-

Vendor

Invoice
40

Vendor Help Desk

(VHD)

First user

Vendor Help Desk

(VHD)

Financial Reporting
(FR)

Corporate office
Invoice Processing & payment:

 Invoice given by vendor

 Invoice checking, whether it is complete in all respect or not
 Invoice entry in IRIS (system software) 41
 Checking by supervisor
 Approval by manager
 Cheques upload by user
 Approved by two ‘cheque signing authorities’
 Cheques issued by bank & collected by FR (financial reporting)

Basic checkpoints to pass any bill:

 Company name
 Bill is related with which purpose
 Quantity
 Amount
 Date
 PO (purchase order)
 Authentication by related department
 GRN (Goods Recipient Note)
 Agreement and “Term and Condition”
 Advance (if paid)
 NOA (Note Of Approval) in some special cases

Important points:

NOA – Note of Approval is necessary for some special expenses which are mainly onetime expense. In
some cases instead of PO, NOA is attached. e.g. Picnic expense etc. It mainly needs approval of related
department, user department, FR head or CEO/COO.
Invoice – Invoices are mainly for capex (capital expenditure) and opex (operating expenditure). These
are provided by vendors. These are legal documents which show that when, how much and at what prices
quantities were delivered according to Purchase Order.

Purchase order - It is an order to vendor which includes vendor’s name, item’s details (such as item’s
name, quantity, rate etc.), delivery schedule all the terms and conditions, and GRN in case of capex and
opex (warehousing goods).

GRN- It is a Good Receipt Note. 42

MONTHLY ACTIVITIES

Revenue Booking and Accounting:

PREPAID REVENUE

1 MTS -outgoing
2 Recharge processing fees [RCV]
3 Recharge processing fees [LAPU]
4 Recharge processing fees [EURONET]
5 GPRS
6 Local SMS
7 National SMS
8 International SMS
9 Roaming SMS
10 Enhance SMS
11 Hello Tune Download
12 Hello Tune Subscription
13 Hello Tune Usages
14 Roaming National
15 MMS
16 Voice Portal – voice Portal – Other Services
17 VMS Retrieval Charge
18 Voice Based Ring Tones
19 Forfeiture
20 IC Revenue
21 Roaming Revenue
POST- PAID REVENUE
1 Postpaid – VAS Revenue
2 Postpaid- Rental Revenue
3 Postpaid – MTS Revenue
 43

b. Market feedback:
Most of the companies were already using data-cards of other companies. They couldn‘t
switch as it was against their companies contract with those ISPs which was binding on
them all over India.
A few companies liked the product but were reluctant to switch over to it as they were
satisfied with their present ISP. They may consider our brand in case or future need.
A few companies had no use for wireless data-cards as leased lines suffice for them.
Companies have reservations against MTS as it is a new brand and has low visibility in
the market.
A few companies were interested in postpaid data-card connection which MTS is not
providing at present.
Most of the companies wished to compare our plan and services with that of our peers
before deciding on the ISP. We have mailed our tariff plans to the companies concerned.
Companies were reluctant to agree to any lock-in period—even if for a few months—
wherein they were required to recharge with a fixed amount if they chose to take our
data-cards free of cost
Companies with new needs are more likely to consider our product.
Educational institutes are ready to give us space for setting up canopies to promote MTS
to their students.
Local manufacturers can get into tie ups with MTS, as is the case with HP & HCL.
d. Challenges
Access to the right persons in the companies
Many companies could not take the decisions regarding such deals, as this power lied
with their corporate offices that were stationed outside Bihar-Jharkhand.
Appointment were very hard to get as many people who oversaw these matters in their
companies didn‘t have time nor any interest in switching over to a new ISP.
Lack of post-paid plans also mattered.
44

c. Opportunity for the company

e. Our learning:
Practical insights into the life and work in a corporate.
How to apply the management learning and soft skills while working at the workplace.
How to take important deduction in employee and vendor payment.
Interacting with various employees and vendors of the company.
Various details on deal negotiation and closures.
Exposure to the fierce competition and the struggle, where only the fittest survive.
How to remain patient and composed in the face of anxiety and pressure.
Accepting negative feedback and listening to ‘NO’ but still finding a way out
45
9. RECOMMENDATIONS
MTS can provide demo data-cards for trial to prospective clients.
MTS should do its product promotion on a large scale to make people aware of MTS.
Company should try and provide better after sales and value added services than its peers
to attract new clients and retain the existing.
As the company has poor customer base in India, but it is a successful brand in Russia,
they should highlight this fact as brand building exercise for MTS.
Focus more on companies which requires their employees to move in course of their jobs
viz. consultancy firms, software development companies etc.
Railway stations and airports can be used for setting up kiosks for compiling a database
of prospective customers.
46
Methodology and Procedure of work:
The methodology and procedure of work is done by interacting people of finance department to understand how
finance function works especially payable and revenue vertical. The following procedure have been adopted to
complete this project.
SL No. COLLECTED FACTS
1 KNOW ABOUT THE ORGANISATION & ITS
STRUCTURE. NAUTE OF WORK FOR
DIFFERENT DEPARTMENTS
2 KNOW DIFFERENT TYPES OF EXPENDITURES
INCURRED IN THE ORGANISATION.
3 KNOW ABOUT THE WORKING OF FINANCIAL
REPORTING & ANALYSIS.
4 KNOW ABOUT PROVISIONING
5 KNOW CASH FLOW MANAGEMENT
6 DID CASH FORCASTING AND MADE DAILY
ACTUAL CASH FLOW
7 LEARN ABOUT THE CONCEPTS OF REVENUE
8 DID WORKING OF RECEIVABLES IN CITRIX
(IRIS)
9 GO THROUGHOUT THE OVERVIEW OF
PAYABLE & REVENUE
REMARKS
Met to each and every employee working in financial
department of MTS, Patna.
There are different types of expenditure such as network,
marketing, sales & distribution, IT , billing and collection,
personnel, administration and customer service delivery.
Workings are mainly divided into 4 parts – payable, revenue,
fixed assets and taxation.
Provisioning is mainly expected expenditure incurred during
current months.
Cash flow is mainly prepared after considering the financial
activities, operating activities, investment, etc.
Cash forecasting is very essential. It tells about expected funds
to credited in company’s account for the coming three days.
Revenue comes from providing services to customers.
Converted unapplied receipts of distributors to applied to get
their invoices in IRIS (software).
Prepared project report according to that.
Analysis Methods:

 Automation tools [linking]

 V-lookup function [ in excel ]
 Judgmental forecasting
 Average function [in excel]
 Pie charts
47
 Bar graphs
 Flow charts
48