Summer Training Project Report

On
Market assessment and analysis of Virgin mobile in Kanpur

Think hatke
Training Report towards partial fulfillment for the award of the degree of

MASTER OF BUSINESS ADMINISTRITION

EXECUTIV

SUMMERY
“Whenever I see People getting a bad deal, or little choice, I want to step in and do

something about it”-(Sir Richards Branson)

The very first thing I did that was a success was Student Magazine. I was a teenager at

the time and we operated from a London basement. By the summer of 1967 the magazine

started to take off and had a circulation of over 50,000 copies an issue. All of us working

on the project felt like we were students, living away from home in a rented basement

with a constant flow of people in and out of the project. It was a very exciting time.

Inspired by that, in 1969 we decided to develop a mail order record company.

Well, I've always liked a challenge! I've been involved in a number of world record-

breaking attempts since 1985. My first success was in 1986 with my boat "Virgin

Atlantic Challenger II". I wanted to rekindle the spirit of the Blue Riband by crossing the

Atlantic Ocean in the fastest ever recorded time. A year later I crossed the same ocean, by

hot air balloon this time. The "Virgin Atlantic Flyer" was not only the first hot-air balloon

to cross the Atlantic but was also the largest balloon ever at 2.3 million cubic feet. It

reached speeds in excess of 130 miles per hour (209k/ph). In January 1991, I crossed the

Pacific Ocean from Japan to Arctic Canada at the furthest distance of 6,700 miles. Again,

this broke all existing records. The balloon measured 2.6 million cubic feet with speeds

of up to 245 miles per hour.

Between 1995 and 1998 I made a number of attempts to circumnavigate the globe by

balloon with Per Lind strand and Steve Fossett. In late 1998 we made a record-breaking

flight from Morocco to Hawaii but unfortunately, our dream of a global flight was

shattered by bad weather… and then a Swiss team successfully circumnavigated the

globe in early 1999. So if all that makes me an adrenaline junkie, then yes, guilty as
charged.

Whenever I experience any kind of setbacks, I always pick myself up and try again. I

prepare myself to have another stab at things with the knowledge I've gained from the

previous failure. My mother always taught me never to look back in regret, but to move

on to the next thing. The amount of time that people waste on failures, rather than putting

that energy into another project, always amazes me. I have fun running the Virgin

businesses, so a setback is never a bad experience, just a learning curve.

I think one of the reasons for our success is the core values which Virgin aspires to. This

includes those that the general public thinks we should aspire to, like providing quality

service. However, we also promise value for money, and we try to do things in an

innovative way, in areas where consumers are often ripped-off, or not getting the most for

their money. I believe we should do what we do with a sense of fun and without taking

ourselves too seriously, too! If Virgin stands for anything, it should be for not being

afraid to try out new ideas in new areas.

Branding is also important. If you get your face and your name out there enough, people

will start to recognize you. Many people know the Virgin brand better than the names of

the individual companies within the group. A young girl once came up to me and told me

I could be famous because I looked just like Richard Branson! Branding is everything. I

think it's also wise to diversify; this enables you to have a contingency plan when the

economy is going through a rough patch.

Finally, I'd better not forget luck. The odd bit of luck goes a long way. We were lucky to

sign Mike Oldfield and we were lucky to get hold of the Sex Pistols in 1977. We've also

been lucky that people liked Virgin Atlantic's unique airline service across the Atlantic,

and I was lucky to survive all my balloon and boat trips!

Most importantly, management is about exactly what it says: “managing”. To manage

you have to make decisions about people, events unfolding and you usually have to spend

money in order to make more. One of the sad realities of big business is that often people

tend to forget the bit about making decisions, which is why so many large companies

seem to suffer from inertia. One of the reasons that we run Virgin as a series of

independent businesses is precisely to keep people focused on managing their individual

companies and keep the decision process fluid. It's worked for us.

Good PR is really about having something different to say in the first place. Your PR is

about your relationship with the public as a whole, rather than just the media. Therefore,

it is about getting products right and the challenge of fixing things that are not. It can

never be about empty promises never met.

Clearly in the eyes of the consumer the brand has not been diluted, but we must guard

against that happening at all costs. Our model is to develop each business separately with

its own shareholder and management – this way we can concentrate on the job in hand,

rather than be part of some enormous and faceless conglomerate. We don't actually plan

to launch new businesses over the next few years, but we are planning to take the ones we

have into new territories. People have been asking me that same question every year

we've been in business! The fact is, Virgin is unique and can't easily be compared to other

brands. Research as recently as this year shows that we're one of the UK's top three

favorite and most respected brands.

It is impossible to run a business without taking risks. Virgin would not be the company

it is today if risks had not been taken. And to be honest, I couldn't tell you which was the

riskiest, because most of the decisions we have to make are risky. The very idea of

entrepreneurship not only conjures up thoughts about starting up businesses and building

them, but also the more frightening prospect of taking risks and failing. It's the last part

that puts so many people off taking a leap into the unknown and working for themselves.
I have enjoyed all the challenges we have taken at Virgin, so because I'm having fun

doing what I do, the risk factor takes second place.

I love what I do and I can't see myself slowing down just yet. I have a fantastic team of

people who do a tough job and seem to enjoy running the businesses with me. We try our

best to keep up with any changes and trends, and by doing so find ourselves entering new

areas of business all the time. Keeping with the pace and continuing to experiment into

new ventures means that I am doing different things all the time anyway.

I try not to have any favorites, but I will always have a soft spot in my heart for Virgin

Atlantic Airways. We started the business in 1984 and almost all my colleagues at Virgin

said I was completely mad to go into the airline business. The newspapers said calling an

airline Virgin was mad. The company is now worth over £1billion, it has fantastic people

working for it and every time I see a Virgin tail fin at an airport around the world, I feel

genuinely proud that we changed the way the airline business worked in the capitalist

west. And of course the Mega stores business, which is our original business from 1970.

The next phase of growth for the Virgin brand will be starting businesses in new

countries and markets, rather than expanding the range of things that we do. The brand is

a major multinational one and that gives us Slots of opportunities to create a truly global

presence, and to do some good, too.

INTRODUCTION
 ABOUT VIRGIN

A recent independent research study has shown that the UK public vote Virgin as

their most admired brand. A sample of 2,000 adults were asked ‘which brands or

companies can you think of that you really admire?” - Virgin received more votes than

any other brand with 23% of votes. Sony came second with 21% of votes, whilst Tesco

came third with 20%.

The results come from a nationally representative survey of 2,000 adults conducted in

February – April 2007 by top research company HPI Research.

Virgin, a leading branded venture capital organization, is one of the world's most

recognized and respected brands. Conceived in 1970 by Sir Richard Branson, the Virgin

Group has gone on to grow very successful businesses in sectors ranging from mobile

telephony, to transportation, travel, financial services, leisure, music, holidays, publishing

and retailing.
Virgin has created more than 200 branded companies worldwide, employing

approximately 50,000 people, in 29 countries. Revenues around the world in 2006

exceeded £10 billion (approx. US$20 billion).

We believe in making a difference. In our customers' eyes, Virgin stands for value for

money, quality, innovation, fun and a sense of competitive challenge. We deliver a

quality service by empowering our employees and we facilitate and monitor customer

feedback to continually improve the customer's experience through innovation.

When we start a new venture, we base it on hard research and analysis. Typically, we

review the industry and put ourselves in the customer's shoes to see what could make it

better. We ask fundamental questions: is this an opportunity for restructuring a market

and creating competitive advantage? What are the competitors doing? Is the customer

confused or badly served? Is this an opportunity for building the Virgin brand? Can we

add value? Will it interact with our other businesses? Is there an appropriate trade-off

between risk and reward?

We are also able to draw on talented people from throughout the group. New

ventures are often steered by people seconded from other parts of Virgin, who bring with

them the trademark management style, skills and experience. We frequently create

partnerships with others to combine skills, knowledge, and market presence and so on.

Contrary to what some people may think, our constantly expanding and eclectic empire is

neither random nor reckless. Each successive venture demonstrates our skill in picking

the right market and the right opportunity.

Once a Virgin company is up and running, several factors contribute to making it a

success. The power of the Virgin name; Richard Branson's personal reputation; our

unrivalled network of friends, contacts and partners; the Virgin management style; the

way talent is empowered to flourish within the group. To some traditionalists, these may

not seem hard headed enough. To them, the fact that Virgin has minimal management

layers, no bureaucracy, a tiny board and no massive global HQ is an anathema.

Our companies are part of a family rather than a hierarchy. They are empowered to run

their own affairs, yet other companies help one another, and solutions to problems come

from all kinds of sources. In a sense we are a community, with shared ideas, values,

interests and goals. The proof of our success is real and tangible.

Exploring the activities of our companies through this web site demonstrates that success,

and that it is not about having a strong business promise, it is about keeping it!

All the Virgin companies listed right here on Virgin.com, making Virgin one of the most

diverse brands in the world. Although the Virgin group is a family of businesses with a

shared brand, all of the companies run independently. Often the companies are set up as

joint ventures with other partners, so they all have different shareholders and boards.

All the markets in which Virgin operates tend to have features in common: they are

typically markets where the customer has been ripped off or under-served, where there is

confusion and/or where the competition is complacent.

4
In these markets, Virgin is able to break into the market and shake it up. Our role is to be

the consumer champion, and we do this by delivering to our brand values, which are:-

Value for Money, Good Quality, Brilliant Customer Service, Innovative, Competitively

ChallengingandFun.

Richard Branson set out with these principles in mind in the 1970s and they still really

define what Virgin is all about. Most companies in the world have a set of brand values,

which in a lot of cases can be completely meaningless.

Virgin believes that the most important thing is the way those values are delivered and

brought to life
 INDUSTRY

PROFILE

The telecom network in India is the fifth largest network in the world meeting up with

global standards. Presently, the Indian telecom industry is currently slated to an estimated

contribution of nearly 1% to India’s GDP.

Introduction
The Indian Telecommunications network with 110.01 million connections is the fifth

largest in the world and the second largest among the emerging economies of Asia.

Today, it is the fastest growing market in the world and represents unique opportunities

for U.S. companies in the stagnant global scenario. The total subscriber base, which has

grown by 40% in 2005, is expected to reach 250 million in 2007.

According to Broadband Policy 2004, Government of India aims at 9 million

broadband connections and 18 million Internet connections by 2007. The wireless

subscriber base has jumped from 33.69 million in 2004 to 62.57 million in FY 2004-

2005. In the last 3 years, two out of every three new telephone subscribers were wireless

subscribers. Consequently, wireless now accounts for 54.6% of the total telephone

subscriber base, as compared to only 40% in 2003. Wireless subscriber growth is

expected to bypass 2.5 million new subscribers per month by 2007.

The wireless technologies currently in use are Global System for Mobile

Communications (GSM) and Code Division Multiple Access (CDMA). There are

primarily 9 GSM and 5 CDMA operators providing mobile services in 19 telecom circles

and 4 metro cities, covering 2000 towns across the country.

Evolution of the industry-Important Milestones

History of Indian Telecommunications

1851 First operational landlines were laid by the Government near Calcutta.

1881 Telephone service introduced in India.

1883 Merger with the postal system.

1923 Formation of Indian Radio Telegraph Company (IRT).

1932 Merger of ETC & IRT into the Indian Radio and Cable Communication Company

(IRCC).

1947 Nationalization of all foreign telecommunication companies to form the Posts,

Telephone

And Telegraph (PTT), a monopoly run by the government’s Ministry of

Communication.

1985 Department of Telecommunications (DOT) Established, an exclusive

provider of

Domestic and long distance service that would its own regulator.

1986 conversion of DOT into two wholly government – owned companies:

The Vides Sanchar Nigam Limited (VSNL) for International telecommunications and

Mahanagar Telephone Nigam Limited (MTNL) for services in Metropolitan areas.

1997 Telecom Regulatory Authority of India created.

Cellular Services are launched in India.

New National Telecom policy is adopted.

2000 DOT becomes a corporation, BSNL.

Major Players in the market

There are three types of players in telecom services:

• -State owned companies (BSNL and MTNL)

• -Private Indian owned companies (Reliance Info comm, Tata Teleservices,)

• -Foreign invested companies (Hutchison-Essar, Bharti Tele-Ventures,

Escotel, Idea Cellular, BPL Mobile, Spice Communications)

BSNL:

On October 1, 2000 the Department of Telecom Operations, Government of India

became a corporation and was renamed Bharat Sanchar Nigam Limited (BSNL). BSNL

is now India’s leading telecommunications company and the largest public sector

undertaking. It has a network of over 45 million lines covering 5000 towns with over 35

million telephone connections. The state-controlled BSNL operates basic, cellular

(GSM and CDMA) mobile, Internet and long distance services throughout India (except

Delhi and Mumbai). BSNL will be expanding the network in line with the Tenth Five-

Year Plan (1992-97).

The aim is to provide a telephone density of 9.9 per hundred by March 2007. BSNL,

which became the third operator of GSM mobile services in most circles, is now planning

to overtake Bharti to become the largest GSM operator in the country. BSNL is also the

largest operator in the Internet market, with a share of 21 per cent of the entire subscriber

base

BHARTI:

Established in 1985, Bharti 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
 Delhi, 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 National Long Distance Services in

India.

Bharti Tele-Ventures Limited was incorporated on July 7, 1995 for promoting

investments in

Telecommunications services. Its subsidiaries operate telecom services across India.

Bharti’s operations are broadly handled by two companies:

The Mobility group, which handles the mobile services in 16 circles out of a total 23

circles

across the country; and the Infotel group, which handles the NLD, ILD, fixed line,

broadband, data, and satellite-based services. Together they have so far deployed around

23,000 km of optical fiber cables across the country, coupled with approximately 1,500

nodes, and presence in around 200 locations. The group has a total customer base of 6.45

million, of which 5.86 million are mobile and 588,000 fixed line customers, as of January

31, 2004. In mobile, Bharti’s footprint extends across 15 circles. Bharti Tele-Ventures'

strategic objective is “to 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 services”.

MTNL:

MTNL was set up on 1st April 1986 by the Government of India to upgrade the quality of

telecom services, expand the telecom network, introduce new services and to raise
revenue for telecom development needs of India’s key metros – Delhi, the political

capital, and Mumbai, the business capital. In the past 17 years, the company has taken

rapid strides to emerge as India’s leading and one of Asia’s largest telecom operating

companies. The company has also been in the forefront of technology induction by

converting 100% of its telephone exchange network into the state-of-the-art digital mode.

The Govt. of India currently holds 56.25% stake in the company. In the year 2003-04, the

company's focus would be not only consolidating the gains but also to focus on new areas

of enterprise such as joint ventures for projects outside India, entering into national long

distance operation, widening the cellular and CDMA-based WLL customer base, setting

up internet and allied services on an all India basis.

MTNL has over 5 million subscribers and 329,374 mobile subscribers. While the market

for fixed wire line phones is stagnating, MTNL faces intense competition from the

private players—Bharti, Hutchison and Idea Cellular, Reliance Infocomm—in mobile

services. MTNL recorded sales of Rs. 60.2 billion ($1.38 billion) in the year 2002-03, a

decline of 5.8 per cent over the previous year’s annual turnover of Rs. 63.92 billion.

RELIANCE INFOCOMM:

Reliance is a $16 billion integrated oil exploration to refinery to power and textiles

conglomerate (Source: http://www.ril.com/newsitem2.html). It is also an integrated

telecom service provider with licenses for mobile, fixed, domestic long distance and

international services. Reliance Infocomm offers a complete range of telecom services,

covering mobile and fixed line telephony including broadband, national and international

long distance services, data services and a wide range of value added services and

applications. Reliance India Mobile, the first of Infocomm's initiatives was launched on

December 28, 2002. This marked the beginning of Reliance's vision of ushering in a

digital revolution in India by becoming a major catalyst in improving quality of life and

changing the face of India. Reliance Infocomm plans to extend its efforts beyond the

traditional value chain to develop and deploy telecom solutions for India's farmers,

businesses, hospitals, government and public sector organizations. Until recently,

Reliance was permitted to provide only “limited mobility” services through its basic

services license. However, it has now acquired a unified access license for 18 circles that

permits it to provide the full range of mobile services. It has rolled out its CDMA mobile

network and enrolled more than 6 million subscribers in one year to become the country’s

largest mobile operator. It now wants to increase its market share and has recently

launched pre-paid services. Having captured the voice market, it intends to attack the

broadband market.

TATA TELESERVICES:

Tata Teleservices is a part of the $12 billion Tata Group, which has 93 companies, over

200,000 employees and more than 2.3 million shareholders. Tata Teleservices provides

basic (fixed line services), using CDMA technology in six circles:

Maharashtra (including Mumbai), New Delhi, Andhra Pradesh, Tamil Nadu, Gujarat, and

Karnataka. It has over 800,000 subscribers. It has now migrated to unified access

licenses, by paying a Rs. 5.45 billion ($120 million) fee, which enables it to provide fully

mobile services as well.

The company is also expanding its footprint, and has paid Rs. 4.17 billion ($90 million)

to DOT for 11 new licenses under the IUC (interconnect usage charges) regime. The new

licenses, coupled with the six circles in which it already operates, virtually gives the

CDMA mobile operator a national footprint that is almost on par with BSNL and

Reliance Infocomm. The company hopes to start off services in these 11 new circles by

August 2004. These circles include Bihar, Haryana, Himachal Pradesh, Kerala, Kolkata,

Orissa, Punjab, Rajasthan, Uttar Pradesh (East) & West and West Bengal.

VSNL:

On April 1, 1986, the Videsh Sanchar Nigam Limited (VSNL) - a wholly Government

owned corporation - was born as successor to OCS. The company operates a network of

earth stations, switches, submarine cable systems, and value added service nodes to

provide a range of basic and value added services and has a dedicated work force of
about 2000 employees. VSNL's main gateway centers are located at Mumbai, New Delhi,

Kolkata and Chennai. The international telecommunication circuits are derived via

Intelsat and In marsat satellites and wide band submarine cable systems e.g. FLAG, SEA-

ME-WE-2 and SEA-ME-WE-3.

The company's ADRs are listed on the New York Stock Exchange and its shares are

listed on major Stock Exchanges in India. The Indian Government owns approximately

26 per cent equity, M/s Panatone Finvest Limited as investing vehicle of Tata Group

owns 45 per cent equity and the overseas holding (inclusive of FIIs, ADRs, Foreign

Banks) is approximately 13 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 Rs. 70.89 billion ($1.62 billion) in

2001-02 to Rs. 48.12 billion ($1.1 billion) in 2002-03, with voice revenues being the

mainstay. To reverse the falling revenue trend, VSNL has also started offering domestic

long distance services and is launching broadband services. For this, the company is

investing in Tata Telservices and is likely to acquire Tata Broadband.

VODAPHONE

Hutch’s presence in India dates back to late 1992, when they worked with local partners

to establish a company licensed to provide mobile telecommunications services in

Mumbai. Commercial operations began in November 1995. Between 2000 and March

2004, Hutch acquired further operator equity interests or operating licenses. With the

completion of the acquisition of BPL Mobile Cellular Limited in January 2006, it now

provides mobile services in 16 of the 23 defined license areas across the country. Hutch
India has benefited from rapid and profitable growth in recent years. it had over 17.5

million customers by the end of June 2006.

IDEA:

Indian regional operator IDEA Cellular Ltd. 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 Reliance Communications Ltd.

IDEA operates in eight telecom “circles,” or regions, in Western India, and has received

additional GSM licenses to expand its network into three circles in Eastern India -- the

first phase of a major expansion plan that it intends to fund through an IPO, according to

parent company Aditya BirlaGroup .

COMPANY MARKET SHARES:

Company Million Subs (Nov 2003) % share

BSNL 40.3 58.8

Reliance 6.1 8.9

Bharti 5.7 8.3

MTNL 4.9 7.2

Hutchison 2.9 4.2

Idea Cellular 2.1 3.0

BPL 1.4 2.1

Tata Teleservices 1.3 1.9

Spice 1.0 1.4

Escotel 0.8 1.1

Fascel 0.8 1.1

Aircel 0.9 1.4

Hexacom 0.2 0.3

Shyam Telelink 0.1 0.2

Telecom Policy Environment:

Indian telecommunications today benefits from among the most enlightened regulation in

the region, and arguably in the world. The sector, sometimes considered the “poster-boy

for economic reforms,” has been among the chief beneficiaries of the post-1991

liberalization. Unlike electricity, for example, where reforms have been stalled,

telecommunications has generally been seen as removed from “mass concerns,” and thus

less subject to electoral calculations. Market oriented reforms have also been facilitated
by lobbying from India’s booming technology sector, whose continued success of course

depends on the quality of communications infrastructure.

Despite several hiccups along the way, the Telecom Regulatory Authority of India

(TRAI), the independent regulator, has earned a reputation for transparency and

competence. With the recent resolution of a major dispute between cellular and fixed

operators (see below), Indian telecommunications, already among the most competitive

markets in the world, appears set to continue growing rapidly.

While telecom liberalization is usually associated with the post-1991 era, the seeds of

reform were actually planted in the 1980s. At that time, Rajiv Gandhi proclaims his

intention of “leading India into the 21st century,” and carved the Department of

Telecommunications (DOT) out of the Department of Posts and Telegraph. For a time he

also even considered corporatizing the DOT, before succumbing to union pressure. In a

compromise, Gandhi created two DOT-owned corporations:

Mahanagar Telephone Nigam Limited (MTNL), to serve Delhi and Bombay, and Videsh

Sanchar Nigam Limited (VSNL), to operate international telecom services. He also

introduced private capital into the manufacturing of telecommunications equipment,

which had previously been a DOT monopoly. These and other reforms were limited by

the unstable coalition politics of the late 1980s. It was not until the early 1990s, when the

political situation stabilized, and with the general momentum for economic reforms, that

telecommunications liberalization really took off. In 1994, the government released its

National

Telecommunications Policy (NTP-94), 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 1992). Under the government’s new policy, India was
divided into 20 circles roughly corresponding to state boundaries, each of which would

contain two fixed operators (including the incumbent), and two mobile operators.

As ground-breaking as NTP-94 was, its implementation was unfortunately marred by

regulatory uncertainty and over-bidding. A number of operators were unable to live up to

their profligate bids and, confronted with far less lucrative networks than they had

supposed, pulled out of the country. As a result, competition in India’s telecom sector did

not really become a reality until 1999. At that time the government’s New

Telecommunications Policy (NTP-99) switched from a fixed fee license to a revenue

sharing regime of approximately 15%. This figure has subsequently been lowered (to

10%-12%), and is expected to be reduced even further over the coming years. Still, India

continues to derive substantial revenue from license fees ($800 million in 2001-2002),

leading some critics to suggest that the government has abrogated its responsibilities as a

regulator to those as a seller. Another, perhaps even more significant, problem with

India’s initial attempts to introduce competition was the lack of regulatory clarity. Private

operators complained that the licensor – the DOT – was also the incumbent operator.

The many stringent conditions attached to licenses were thus seen by many as the DOT’s

attempt to limit competition. It was in response to such concerns that the government in

1997 set up the Telecom Regulatory Authority of India (TRAI), the nation’s first

independent telecom regulator. Over the years, TRAI 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 incumbent’s many challenges to its authority, and accusations of ineptitude by private

players. Throughout the late 1990s, TRAI’s 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 2000, with the passing of the TRAI Amendment Act,

that the regulatory body really came into its own. Coming just a year after NTP-99, 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 include:

• The corporatization of the DOT and the creation of a new state-owned telecom

company, Bharat Sanchar Nigam Ltd (BSNL), in 2000;

• The opening up of India’s internal long-distance market in 2000, and the subsequent

drop in long-distance rates as part of TRAI’s tariff rebalancing exercise;

• The termination of VSNL’s monopoly over international traffic in 2002, and the partial

privatization of the company that same year, with the Tata group assuming a 25% 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 2002, of IP telephony (a move that many believe was held up due to

lobbying by VSNL, which feared the consequences on its international monopoly); The

introduction in 2003 of a Calling Party Pays (CPP) system for cell phones, despite

considerable opposition (including litigation) by fixed operators;

• And, more generally, the commencement of more stringent interconnection regulation

by TRAI, which has moved from an interoperate or “negotiations-based” approach (often

used by the stronger operator to negotiate ad infinitum) to a more rules-based approach.

All 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. Many operators (mobile

players in particular) still complain about the difficulties of gaining access to the

incumbent’s (BSNL) network, and the government’s insistence on capping FDI in the

telecom sector to 49% (a move made in the name of national security) limits capital
availability and thus network rollout. In addition, ISPs, who were allowed into the market

under a liberal licensing regime in 1998, continue to hemorrhage money, and have been

pleading with the government for various forms of relief, including the provision of

unmetered phone numbers for Internet access. Despite initially impressive results, the

growth of Internet in the country has recently stalled, with only 8 million users.

Broadband penetration, too, remains tiny.

Unified Licensing

But perhaps the biggest – and, until recently, most intractable – regulatory problem has

been the drawn-out battle over “limited mobility” telephony. This imbroglio began in

1999, when MTNL sought permission from TRAI to provide CDMA-based WLL

services with “limited mobility.” GSM cellular operators were soon up in arms, arguing

that “limited mobility” was simply a backdoor entry into their business.

Moreover, fixed operators had paid lower license and spectrum fees than cellular ones;

were not required to pay access charges for cell-to-fixed calls (unlike their cellular

counterparts); 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. Fixed operators including new entrants Reliance and Tata

Teleservices claimed that they were being prevented from providing a cheap service that

would drive penetration and be of benefit to the “common man”; cellular players bitterly

opposed what they perceived as unequal 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 2002, for example, thousands of mobile users

in New Delhi were for a time cut off from the fixed-line network when MTNL shut down

interconnection for cellular companies. (MTNL later attributed the incident to a

“technical snag.”) It was not until late 2003 that the issue was finally resolved, under
considerable government pressure, when cellular operators agreed to withdraw their

many cases against the fixed-line operators.

Fixed operators would in effect be allowed to enter the mobile business; in return, the

government granted cellular players several concessions, including lower revenue-share

arrangements estimated to total over $210 million. Perhaps most notably, the government

announced its intention to adopt a “unified access licensing” regime, which would in the

future provide a single, technology-neutral license for fixed and cellular operators. The

hope is that this new license category will prevent a repeat of the recent controversy, and

allow new technologies to enter the Indian market without requiring a wholesale rewrite

of licensing laws.

MAJOR MARKET TRENDS:

The telecoms trends in India will have a great impact on everything from the humble PC,

internet, broadband (both wireless and fixed), cable, handset features, talking SMS,

IPTV, soft switches, and managed services to the local manufacturing and supply chain.

This report discusses key trends in the Indian telecom industry, their drivers and the

major impacts of such trends affecting mobile operators, infrastructure and handset

vendors.

Higher acceptance for wireless services:

Indian customers are embracing mobile technology in a big way (an average of four

million subscribers added every month for the past six months itself). They prefer
wireless services compared to wire-line services, which is evident from the fact that while

the wireless subscriber base has increased at 75 percent CAGR from 2001 to 2006, the

wire-line subscriber base growth rate is negligible during the same period.

In fact, many customers are returning their wire-line phones to their service providers as

mobile provides a more attractive and competitive solution. The main drivers for this

trend are quick service delivery for mobile connections, affordable pricing plans in the

form of pre-paid cards and increased purchasing power among the 18 to 40 years age

group as well as sizeable middle class – a prime market for this service.

Some of the positive impacts of this trend are as follows. According to a study, 18

percent of mobile users are willing to change their handsets every year to newer models

with more features, which is good news for the handset vendors. The other impact is that

while the operators have only limited options to generate additional revenues through

value-added services from wire-line services, the mobile operators have numerous

options to generate non-voice revenues from their customers. Some examples of value-

added services are ring tones download, colored ring back tones, talking SMS, mobisodes

(a brief video programme episode designed for mobile phone viewing) etc. Moreover,

there exists great opportunity for content developers to develop applications suitable for

mobile users like mobile gaming, location based services etc. On the negative side, there

is an increased threat of virus – spread through mobile data connections and Bluetooth

technology – in mobile phones, making them unusable at times. This is good news for

anti-virus solution providers, who will gain from this trend.

MERGERS

Demand for new spectrum as the industry grows and the fact the spectrum allocation in

done on the basis of number of subscribers will force companies to merge so as to claim

large number of subscribers to gain more spectrum as a precursor to the launch of larger

and expanded services. However it must also be noted that this may very well never

happen on account of low telecom penetration.

NEW CIRCLES

As mentioned earlier there is a significant number of tier-2 and tier 3 cities that can

accommodate more players we expect aggressive response by the companies to such

opportunities as and when they are created.

Important Statistics

Category Revenue in Million Growth (percentage) 2002-03 2001-02

Access Services

Basic Services 3804 3488 9.05

Cellular Services 1093 726 50.5

Other Services

NLD Services NLD Services 786 991 -20.7

ILD Services 716 902 -20.5

Internet Services 76 148 14.3

VSAT Services (Only services) 30 27 9.7

Radio Trunking Services 6.18 3.42 80.87

Others 23 19 24.1

Grand Total of Services Industry 6626 6304 5.11

Indian Telecommunication story: From 10 million to 150 million mobile

subscribers in 5 years.

Yes, that’s true. Indian telecommunication Industry is one of the fastest growing telecom

market in the world. The mobile sector has grown from around 10 million subscribers in

2002 to reach 150 million by early 2007 registering an average growth of over 90% yoyo.

The two major reasons that have fuelled this growth are low tariffs coupled with falling handset

prices.

Surprisingly, CDMA market has increased it market share upto 30% thanks to Reliance

Communication. However, across the globe, CDMA has been loosing out numbers to popular

GSM technology, contrary to the scenario in India.

The other reason that has tremendously helped the telecom Industry is the regulatory changes and

reforms that have been pushed for last 10 years by successive Indian governments. According to

Telecom Regulatory Authority of India (TRAI) the rate of market expansion would increase with

further regulatory and structural reforms.

Even though the fixed line market share has been dropping consistently, the overall (fixed and

mobile) subscribers has risen to more than 200 million by first quarter of 2007.
The telecom reforms have allowed the foreign telecommunication companies to enter

Indian market which has still got huge potential. International telecom companies like

Vodafone have made entry into Indian market in a big way.

Currently the Indian Telecommunication market is valued at

around $100 billion (Rupees 400,000 crore). Two telecom

players dominate this market - Bharti Airtel with 27% market

share and Reliance Communication with 20% along with other

players like BSNL (Bharat Sanchar Nigam Limited) and

AT&T.

One segment of the market that has been puzzling is broadband Internet. Despite the

manner in which the countries Internet market has been booming, India’s move into high-

speed broadband Internet access has been distinctly slow. And, while there appears to be

considerable enthusiasm amongst the population for the Internet itself, this has not been

reflected in broadband subscription numbers. In 2006 India witnessed a good surge in

broadband users with the total subscriber base in the country expanding by almost

200% to just over 2 million by years end. Despite this surge, broadband penetration in

India still remains around only 0.2%; broadband services still account for only 25% of

the total Internet subscriber base, still in itself comparatively low.

The Ministry of Communications and Information Technology (MCIT) is has very

aggressive plans to increase the pace of growth, targeting 250 million telephone

subscribers by end-2007 and 500 million by 2010. Most of the expansion in subscribers is

set to occur in rural India. India’s rural telephone density has been languishing at around

1.9%;
So, if 70% of total population is rural, the scope for growth in this Industry is

unprecedented.

GSM and CDMA subscription numbers:

GSM Subscribers GSM Annual CDMA Subscribers CDMA Annual

Year
(millions) growth (millions) growth

2000 3.1 94% - -

2001 5.05 76% - -

2002 10.5 91% 0.8 -

2003 22.0 110% 6.4 700%

2004 37.4 70% 10.9 70%

2005 58.5 57% 19.1 75%

2006 105.4 80% 44.2 131%

2007 180.0 71% 85.0 92%

 T he I ndian T
~ 125 million s ubs c ribers

More than 4 million s ubs

The s ec tor has grow n at

While the tariffs have decreased, the subscriber base has

exploded

Ef f e c tiv e

16
14
14

12
The biggest challenge is decreasing ARPU …
COMPANY

PROFILE
 Profile of the founder of the company

Sir Richard Branson founder of the

company:

18 July 1950 (age 58)

Born
Shamley Green, Surrey, England,

UK
Residence London, England, U.K.
Nationality British
Occupation Chairman of Virgin Group
Net worth £4.4 billion
Joan Temple man (1989–present)

Spouse(s) Kristen Tomassi (1972–1979),

divorced
Holly Branson (26),
Children
Sam Branson (22)

Sir Richard Charles Nicholas Branson (born 18 July 1950) is an English business

magnate, best known for his Virgin brand of over 360 companies. Branson's first

successful business venture was at age 16, when he published a magazine called Student.
He then set up a record mail-order business in 1970. In 1972, he opened a chain of record

stores, Virgin Records, later known as Virgin Megastores and rebranded as zavvi in late

2007. With his flamboyant and competitive style, Branson's Virgin brand grew rapidly

during the 1980s - as he set up Virgin Atlantic Airways and expanded the Virgin Records

music label. Richard Branson is the 245th richest person according to Forbes' 2008 list of

billionaires as he has an estimated net worth of approximately $2.8 billion USD.

In 1970 he founded Virgin as a mail order record retailer, and not long after he opened a

record shop in Oxford Street, London. During 1972 a recording studio was built in

Oxford shire, and the first Virgin artist, Mike Oldfield, recorded "Tubular Bells" which

was released in 1973.

This album went on to sell over 5 million copies! Since then many household names,

including Belinda Carlisle, Genesis, Phil Collins, Janet Jackson and The Rolling Stones

have helped to make Virgin Music one of the top six record companies in the world. The

equity of Virgin Music Group - record labels, music publishing, and recording studios

was sold to THORN EMI in 1992 in a US$1billion deal.

The Virgin Group has now expanded into international music Megastores, air travel,

mobile, financial, retail, music, internet, drinks, rail, hotels and leisure, with around 200

companies in over 30 countries. Yes, we've been busy!

Virgin Atlantic Airways, formed in 1984, is now the second largest British long haul

international airline and operates a fleet of Boeing 747 and Airbus A340 aircraft to New

York, Miami, Boston, Los Angeles, Orlando, San Francisco, Hong Kong, Johannesburg,

Tokyo, Las Vegas, Delhi, Lagos, Port Harcourt, Shanghai and the Caribbean. The airline

is based on the concept of offering a competitive and high quality Upper Class, Premium
Economy and Economy service. The airline has won many major awards, including

Airline of the Year Award several times.

During 1997 Virgin took over Britain's two most run-down rail franchises, Cross-country

and the West Coast Main Line. Virgin is currently engaged in a £2billion fleet

replacement programme.

In 2002, the combined sales of the different Virgin holding companies exceeded

£4billion. In addition to his own business activities, Richard is a trustee of several

charities including the Virgin Healthcare Foundation, a leading healthcare charity which

was responsible for the launch of a health education campaign relating to AIDS in 1987.

The Foundation has also become involved in a lobbying campaign called Parents against

Tobacco, which aims to restrict tobacco advertising and sponsorship in sport.

His help in the initial funding of charity projects helped that organization to raise over

£100 million, through campaigns such as Comic Relief and many other charities. For

more information on the Virgin Group and charity,

And to keep his adrenaline levels high, Richard has been involved in a number of world

record-breaking attempts since 1985. In 1986 his boat, "Virgin Atlantic Challenger II"

rekindled the spirit of the Blue Riband by crossing the Atlantic Ocean in the fastest ever

recorded time. This was followed a year later by the epic hot air balloon crossing of the

same ocean in "Virgin Atlantic Flyer". This was not only the first hot-air balloon to cross

the Atlantic, but was the largest ever flown at 2.3 million cubic feet capacity, reaching

speeds in excess of 130 miles per hour (209 km/h).

Still after the ultimate adventure, in January 1991 Richard crossed the Pacific Ocean from

Japan to Arctic Canada, the furthest distance of 6,700 miles. Again, he broke all existing

records, with speeds of up to 245 miles -per hour in a balloon of 2.6 million cubic feet.
 COMPANY VISION

Project Aware isn’t just about tackling the big social and environmental issues of

the day. It’s also about making sure that we take a duty of care and do the best for

our:

• People

Treatment and welfare of our current and future

 • Partners

Our ethics regarding how we choose our suppliers and how we work with them

• Customers

Being the consumers champion, thinking about the inclusively of our products

and services

• Communities

Using time, resource and business expertise to support communities around the

world

• Environment

Minimizing the environmental impact of our operations to address a long-term,

sustainable future

Project Aware isn’t a policy on a shelf. We want it to be lived and breathed by every

member of staff so that we know Virgin companies across the world are constantly

striving to meet and exceed their responsibilities as good corporate citizens.

Project Aware isn’t a separate head office function since we strongly believe that

responsible business practice can only be truly achieved through its integration into every

area and level of the business.

Group CEO Stephen Murphy has been instrumental in the development of Project Aware.
Virgin Mobile enters India through pact with Tata Teleservices

Initial launch in 50 cities; offering SIM card-based CDMA service

Comes calling: Sir Richard Branson, Chairman and Founder, Virgin Group, and Mr Anil

Sardanah, Managing Director, Tata Teleservices Ltd, at the launch of ‘Virgin Mobile’ in

Mumbai on Sunday. – Shashi Ashiwal

Mumbai, March 2 Sir Richard Branson on Sunday launched the Virgin Mobile brand in

India through a franchise arrangement with Tata Teleservices.

TTSL, which is the second largest CDMA operator with 22 million customers, will sell

the youth-based mobile service under the brand name of Virgin Mobile.

The financial arrangements between the two companies were not disclosed, but an

official said TTSL would be paying Virgin what would be in the nature of a royalty fee.

Virgin will not be entering India as a Mobile Virtual Network Operator (MVNO), as

feared by some of the existing telecom operators, said Mr Anil Kumar Sardanah,

Managing Director, TTSL, at a news conference here.

An MVNO is an operator that does not own infrastructure, network or spectrum but

leases these to offer services. Virgin operates as an MVNO in all its global markets. At

the news of Virgin launching in India, the Cellular Operators Association of India had

written a letter of complaint to the telecom authorities.

Big investment:

This is Virgin’s seventh launch globally and its largest investment to date in India, said

Sir Richard, noting that the Indian market was very attractive, growing like none other in

the world.

The Virgin group and TTSL have also jointly established a company ‘Virgin Mobile

India Ltd’ to develop the new branded service. The investment details of this company

were not disclosed either.

The Virgin youth service aims to acquire 5 million subscribers over the next three years,

during which period it will become profitable too, Sir Richard said.

“The estimated population in India of people between 15 and 30 years is 400 million,

almost six times the whole of the UK population; and these numbers promise to be a lot

of fun,” Sir Richard said.

Mr Jamie Heywood, Deputy CEO, Virgin Mobile India, said there were 215 million

Indians aged 14-25 and over the next three years there would be 50 million additionally.

In all, revenues from this segment then would be over Rs 35,000 crore, he said.

To begin with, Virgin Mobile will be launched in 50 cities, and in a year’s time in over

1,000 cities. Specially designed handsets in the Rs 2,000-5,000 range would be offered

by TTSL, but customers are free to buy CDMA handsets separately, since Virgin would

be offering a SIM-card based CDMA service, the first such offer in India, said Mr

Heywood.
 Virgin brands (under various ownership)

Further information: List of Richard Branson's business ventures

• AirAsia X — long-haul budget airline operating from Malaysia (20% owned by

Virgin Group).

• Oüı FM — rock radio station in France and Asia

• V Festival — two-day music festival held in two separate locations in the United

Kingdom

o V Festival (Australia) — an Australian version of the V Festival

o Virgin Festival — a North American version of the V Festival

• Virgin Active — a health club chain in South Africa, Spain, Portugal, Italy and

the UK

• Virgin America — a United States budget airline based at San Francisco

International Airport

• Virgin Atlantic Airways — an international carrier based at Heathrow Airport,

London

• Virgin Balloon Flights — a hot air balloon operator

• Virgin Blue — an Australian-based budget airline operating in the South Pacific

o Blue Holidays — The holiday program of Virgin Blue, now a joint

venture between Virgin Blue and Zuji

o Pacific Blue — a Virgin Blue subsidiary based in New Zealand

o Polynesian Blue — a Virgin Blue subsidiary based in Samoa

o V Australia — a planned Virgin Blue international subsidiary set to offer

flights between Australia and the USA

• Virgin Books — publisher, retailer and distributor of books

• Virgin Brides — bridal wear shop in Manchester, UK

• Virgin Charter — a private jet online marketplace

• Virgin Comics — comic book producer

• Virgin Vie At Home — retailer of cosmetics, jewellery and homeware through

internet, direct selling and Virgin Vie stores

• Virgin Drinks — drink manufacturer

o Virgin Cola — carbonated cola soft drink

o Virgin Vodka — alcoholic beverage

• Virgin Experience Days — corporate and consumer experience events

• Virgin Flowers — Internet florist

• Virgin Galactic — a venture to market and operate commercial space flights,

using spacecraft designed by Scaled Composites

• Virgin Games — online games and gambling

• Virgin Green Fund (originally known as Virgin Fuels) — venture capital firm for

investing in petroleum alternatives

• Virgin Health Bank[2] — a business enabling parents—to—be to store their baby's

stem cells

• Virgin Holidays — UK travel agency and tour operator for worldwide

destinations served by Virgin Atlantic and its partner companies

o Virgin Holidays Cruises — UK cruise holiday agent

• Virgin Limited Edition — exclusive hotel operator

o Kasbah Tamadot — exclusive Moroccan holiday destination

o Lady B — luxurious Catamaran available for Caribbean charters

o The Lodge — ski lodge

o Natirar — private spa located in Somerset County, New Jersey

o Necker Island — exclusive island in British Virgin Islands for private hire
 o The Roof Gardens and Babylon — 1.5 acres open air gardens, venue,

nightclub and restaurant in Kensington, London

o Ulusaba — exclusive game reserve in South Africa

• Virgin Limobike — passenger bike service in London

• Virgin Limousines — chauffeured limousine service in San Francisco and

Northern California

• Virgin Media — provider or home telephone, cable television, broadband and

mobile services to the United Kingdom

• Virgin Media Television — a British television network, made up of Virgin 1,

Trouble, Bravo, Living TV & 50% stake in UKTV

o Virgin 1 — a general entertainment channel on Freeview, Virgin Media

and Sky Digital

• Virgin Mobile — brand used by several companies providing mobile phone

service around the world

o Virgin Mobile UK — provides mobile phone service in the United

Kingdom, now part of Virgin Media

o Virgin Mobile Australia — provider of mobile phone service in Australia

o Virgin Mobile Canada — provider of mobile phone service in Canada

o Virgin Mobile South Africa — provider of mobile phone service in South

Africa

o Virgin Mobile USA — provider of mobile phone service in the United

States

o Virgin Mobile France — provider of mobile phone service in France

o Virgin Mobile India — provider of mobile phone service in India

• Virgin Money — providers of financial services

o Virgin Credit Card

• Virgin Nigeria — international, regional and domestic Nigerian airline

• Virgin Play — a Spanish publisher of video games, once part of the now defunct

Virgin Interactive.

• Virgin Radio — Virgin branded radio stations around the world.

o Virgin Radio (UK) — (currently owned byTIML Golden Square Limited)

UK commercial radio station broadcast on AM, FM (London only), and

DAB. This station is soon to rebrand away from the Virgin name.

o Virgin Radio Asia — collection of station operating in India and Thailand

including Virgin Soft, Hitz, Easy FM and Oui

o Virgin Radio Classic Rock — (TIML Golden Square Limited) classic rock

station broadcast on DAB, internet and Satellite TV

o Virgin Radio (France) — -(Lagardère Active) a rebranding of the "Europe

2" radio station

o Virgin Radio Groove — (TIML Golden Square Limited) soul, motown

and disco music station broadcast on DAB, internet and Satellite TV

o Virgin Radio Italia — An Italian radio station

o Virgin Radio Xtreme — (TIML Golden Square Limited) rock station

aimed at teenage males broadcast on DAB, internet and Satellite TV

• Virgin Records — record label now owned by EMI

• Virgin Spa — shop chain retailing Virgin Cosmetics product

• Virgin Trains — a railway operator in the United Kingdom

• Virgin Unite — charitable foundation

• Virgin Vacations — U.S. travel agency

• Virgin Vines — A Californian—based company, created in 2005 and producer of

Red and White wines

• Virgin Voucher — gift voucher scheme, also functions as a staff reward scheme

• Virgin Ware — clothes brand and retailer

 MANAGEMENT TEAM

Alan Gow (51) - Managing Director

Mr Gow became Managing Director in July 2006, following his

years as CFO of Virgin Mobile, which he joined in February 1999

from One2One/T-Mobile.

Steel (40) - Deputy MD and Commercial Director

Mr Steel joined Virgin Mobile in February 1999 as Marketing

Director and was responsible for the Virgin Mobile proposition to

customers.

Graeme Hutchinson (44) - Trading Director

Mr Hutchinson joined Virgin Mobile in June 1999 from

Barclaycard where he was General Manager of Barclaycard's

Telephony and New Media business unit.

Karen Thornber (49) - People Director

Ms Thornber, 49, joined Virgin Mobile as People Director in

January 2005. She brings a wide range of Human Resources

experience from a variety of organizations including Marks &

Spencer and CGNU, where she held senior HR roles.

Mike Thomas (35) – Finance Director

Mike Thomas joined Virgin Mobile in December 1999, just weeks

after launch. After initially helping establish the financial control

function, he was promoted to Head of Commercial Finance where

he established and developed this department.

David Foster (44) – Customer Services Director

Mr Foster joined Virgin Mobile in June 2000 from direct

marketing agency, Brann. In his role as Brann's Director of

Telemarketing he was responsible for the Sales, Client Service and

Call Centre operations.

 Management Staff in U.P. of Virgin Mobile

Virgin Group CEO : Mr. Stephen Murphy

Deputy CEO Virgin Mobile : Mr. Jamie Heywood

Managing Director : Mr. Anil Sardanah

Regional Head : Mr. Nishit Ranjan

Marketing Head : Mr. Ansuman

ZSM : Mr. Sandeep Mishra

ASM Lucknow : Mr. Amitabh Srivastava

ASM Kanpur Mr. Mudassir Asfaq Siddque

 HANDSETS RANGE

In India the virgin mobile initially launch a set of 6 handsets, which are different

companies

Like Haier, Huawei, ZTE and Samsung

The handsets of virgin mobile

vBling

Are you ready to get noticed? Apart from traffic-

stopping style, this shinny little piece offers you
loads of great features!

Offer price: 2199 Rs.

The vBling is for you if:

You like to pub-hop till you drop

You can’t help but shake it like Shakira when you see the dance floor

TOP FEATURES

vSleek
 Unbelievably thin
Unbelievably stylish
Unbelievably sleek
vSleek… Unbelievable … but true!

Offer price: Rs.4,799

The vSleek is for you if:

You know what’s going to be in next issue of Vogue even before

Vogue does

You set the trends and everyone else follows

TOP FEATURES

vKewl

Unleash the style

Unleash the grooviness
Unleash the beast
The vkewl is here!

Offer price: Rs.4,393

 The v Kewl is for you if:

You always find strange shapes & formations in the clouds

You were the one dressed up as ‘The chicken that crossed the road’ at
the costume party

TOP FEATURES

vTrendy

Say halo in style with the Virgin Mobile vTrendy.

Offer price: Rs.1,499

The vTrendy is for you if:

You put the ‘Trend’ in ‘Trendy’!

Casual and sporty makes up your style statement

TOP FEATURES
 Nokia 2505

Offer price: Rs.3,760

The Nokia 2505 is for you if:

You’re always losing your house-keys in the dark

You love singing along to Radio Ga-Ga!

TOP FEATURES
 vSwing

It's cool to be a swinger.

Grab the brand –new vSwing today!

Offer price : Rs. 1,799

The vSwing is for you if:

You and your phone are partners-in-crime

(in the words of Sheryl Crow) All you wanna do is have some fun!

TOP FEATURES
 Reload Options

There are three types of Recharge Coupon Voucher of Virgin mobile.

 Validity Recharge Coupon.

 Top up

 vPower

1- Validity Recharge Coupon table: -

Recharge Processing Talk time Validity Service Extras

(Rs.) Fee (Rs.) (Rs.) (Days) Tax (Rs.)

200 78 100 30 22.00 50 Local SMS Free

249 41.61 180 30 27.39 300 Local SMS Free

499 44.11 400 180 54.89 99 Local SMS Free

299 217 50 365 32.89

295 10 Life Time 32.45

2- Topup Talk time Table: -

Recharge Processing Talk time Service Tax

(Rs.) Fee (Rs.) (Rs.) (Rs.)

10 1 7.90 1.10

25 2.25 20 2.75

50 2.50 42 5.50
 100 3 86 11.00

199 0 177.11 21.89

svPower

Recharge MRP Validity Benefits

(Rs.) (days)
STD Power 35 30 All STD @ Re 1/min
SMS Power 30 30 All Local SMS @ 20p/msg
ISD Power 30 30 Gulf Calling @ 3.99/min
SMS Power 39 30 500 Local SMS Free
YoYo Plan 28 30 700 min V2V 10p/min
V2V Pack 18 3 Local V2V @ 30p/min

Virgin Mobile Tariff Details

Call Tariffs Description Rs/60 Second pulse

 (except for GPRC)

Local: First 2min/Day All Local Mobiles GSM & 1

CDMA Landline

3rd min onward/Day All Local Mobiles GSM & 0.50

CDMA Landline

STD All Mobile & Landline 2.4

Roaming: Local OG/min Calls made in visited 1.4

network

Incoming/min All Calls from Home & 1.75

Other networks in visited
networks

sRoaming: STD OG Calls made from visited 2.4

network to home & other
networks

SMS: Local 1

SMS: National 2

SMS: Roaming 3.45

SMS: International 5

AWARDS & ACHEVEMENTS

• Marketing Society Awards for Excellence 2006 – Winner of the Marketing

Achievement Award for Kate Moss Contract

• Mobile News Awards, Best Advertising, Marketing and PR Campaign Local (V

Festival), 2006

• Mobile News Awards, Commendation for Best National Advertising Campaign

for Kate Moss Contract, 2006

• Mobile News, Mobile Industry Customer Satisfaction Survey in association with

Aura – Best Network 2005

• JD Power Customer Service Survey – 1st place 2004, 2005

• Sunday Times 100 Best Companies to Work For 2005

• What Mobile Readers Awards – Best network 2005

• What Mobile Readers Awards – Best Gadget Celebrity 2005

• Rebrand 100 – Notable for Bites Magazine 2005

• Rebrand 100 – Notable for Underground Store 2005

• Mobile News Awards – Best Local Advertising / Marketing / PR Local (Great

Rent Escape) 2005, (Big Red House student promotion) 2003

• Mobile News Awards – National PR/Advertising Campaign 2004, 2002, 2001,

2000

• Financial Times, Accountability, Great place to work in the UK 2006, 2004, 2003
• GSM Awards 2004 – Best Marketing, Brand or PR Campaign – Commended

"The Devil Makes Work for Idle Thumbs" 2004

• British Television Advertising Awards – Diploma for 3p texting "The Devil

Makes Work for Idle Thumbs" viral 2004

• JD Power Customer Service Survey – 1st place 2004

• Mobile Choice Awards – Best Customer Service 2005, 2004, 2003, 2002, 2001

• Mobile Choice Awards – Best Consumer Ad campaign for Idle Thumbs 2004

• Mobile Choice Awards – Best Prepay Package 2003, 2002, 2001

• National Customer Service Awards – Complaints Team of the Year 2003 gory

• Outstanding Service to the Community Business Awards (Wiltshire Business of

the Year Awards 2003)

• Certificate of distinction finalist award from 2003 International Print and Radio

advertising awards – for our Christmas catalogue 2002 in the 'company literature'

category

• APA Awards – Wyclef Jean advert was recognized as one of the funniest British

television commercials for 2003

• Eyeblaster Awards – Interactive bug squashing Internet advert was nominated for

'Best Rich Media Advert' 2003

• Computer Weekly Awards – TSD, one of the best places to work in IT 2003

• European Call Centre Awards – Best Induction Training 2002

• Unisys / Management Today – Service Excellence Award, Best Retail &

Consumer Services Category 2002

• Advanced Card Awards – Best New Product Marketing Campaign 2000 for

Virgin Xtras

• Mobile Choice Magazine, Customer Service Best Network 2000

• Mobile Choice Magazine, Customer Service Best Network 2000

FUTURE

OF

MOBILE
As per the latest reports, number of mobile subscribers in India has crossed the 250

million mark.

By April 2008, India is projected to become the second largest wireless market in the

world.

So, is it time to pop that bottle of champagne and celebrate?

Definitely. Second largest wireless market in the world -WOW!!! That’s indeed an

incredibly mind blowing statistic.

But the celebration will probably be short-lived. Why?

Because as the graph below shows, even though we are well on way to become the

world’s second largest mobile market, our average ARPU remains one of the lowest in

the world.
As per the latest performance reports from TRAI, all India blended ARPU for GSM at the

end of the latest quarter was Rs 261 while that for CDMA was Rs. 176.

If you look at the stats over the past 9 months, they appear even bleaker. Over the past 9

months, ARPU has dropped 17.41% for GSM while it has dropped 10.20% for CDMA.

Minutes of Use (MOU) per subscriber has increased by a measly 2.2% over the past 9

months for GSM players while it dropped by 11.56% for CDMA players.
Of this ARPU, what is the revenue breakup for various services / applications?

Here’s a chart highlighting the revenue breakup for GSM:

Here’s a chart indicating the revenue breakup for CDMA players in India
This 9 month trend is more than likely to continue. Fierce competition to add new

subscribers will continue to drive down the ARPU further. Number portability will only

exacerbate the problem - operators will need to drop prices to keep the churn rate at a

minimum and stay competitive. Voice and rental revenues - the two biggest contributors

to the current ARPU, will continue to dwindle due to market pressures and as the market

matures. A Operators will soon need to start looking for additional means to offset the

ARPU deficit. And most likely, its going to come from data services.

So, will 3G be the saving grace ?

Globally, operators have yielded huge revenue gains from 3G rollout. Almost all have

seen an up tick in data usage and in several cases (KDDI, DoCoMo, 3 UK, O2 UK etc.),

data services are contributing more than 30% to the overall ARPU.
Will a 3G rollout in India exhibit similar behavior? I’d definitely like to believe so.

But there are a number of challenges for 3G to be successful in India:

• Clear revenue sharing guidelines between operator and content producers.

Currently, operators get a 60% chunk of the revenue, while the content owners get

about 25% and 15% goes to the copyright owner. This breakup seems to unfairly

skewed in favor of the operators. Seems like some progress is already happening

on this front.

• High percentage of prepaid customers. About 90% of all GSM & CDMA

subscribers in India are prepaid customers. Prepaid customers are low usage

customers and contribute only 25-30% ARPU’s as compared to the post-paid

segment (for GSM, post-paid customers contributed Rs 628 in ARPU while pre-

paid customers contributed only Rs 219. for CDMA, post-paid customers

contributed Rs 499 in ARPU while pre-paid customers contributed only Rs. 140).

As mentioned earlier, the introduction of number portability will further worsen

the attrition scenario, since it’ll make easy for users to change operators and keep

their same number. Operators will have to devise means and offer plans to retain

subscribers and also convert some of the pre-paid customers to post-paid ones.

• More choices for affordable, 3G capable handsets. While there exists a subset of

subscribers who would pay more for a premium phone, affordability would be an

issue for quite large section of the subscriber base. Currently, only 5% of all

handsets in India are 3G capable.

• Copyright and piracy issues need to be addressed. The proposed amendments to

the Indian IT Act will most likely take care of this point.

• Getting users out of the vice like grip of SMS will be a challenging task
Inspite of all the hurdles, the challenges seem puny as compared to the benefits that India

stands to gain from the 3G deployment. Rollout of 3G will give the much needed

bandwidth that all stakeholders are hoping for. Without 3G (read high speed network),

the clichéd term “Mobile will be the Internet platform in India” will never become a

reality.

Operators like Bharti Airtel seem to be raring to go - they’ve successfully tested 3G

services in Delhi, Mumbai and Bangalore and are waiting for the spectrum to be

allocated. Mobile users, of course, can hardly wait for 3G to go live in India.

TOP TEN FACT OF WHY VIRGIN IS DIFFERENT

At Virgin Mobile, we do our very best to give people what they want. We concentrate on

finding fresh ways to make our service better than everyone else's: more value, more

Shonesty, more help, more fun.

Here are ten facts you might or might not already know about us.

1. Virgin Mobile is the UK’s most successful virtual network operator

Virgin Mobile is now established as the most successful virtual network operator in the

UK, using T-Mobile's network.

2. More than 4 million customers

Since its launch in November 1999 Virgin Mobile has attracted more than 4 million

customers (on a 90 day activity basis).

3. Virgin Mobile is one of the best places to work in the UK

Virgin Mobile was ranked 22nd in the Financial Times Top 50 Best Workplaces list, and

was 72nd overall in 'The Sunday Times 100 Best Companies to work for 2005'.

4. No hidden costs

With Virgin Mobile there's no peak rates, no hidden charges, and voicemail retrieval is

free in the UK. What you see is what you get with Virgin Mobile.

5. Red is for rewards

Earn up to £100 off your next phone. Virgin Mobile makes it easy – for every £100 you

spend on calls and messages we'll give you £10 off a new phone. That is up to a

maximum of £100 on any new phone in our range.

6. Our bundles last longer

We've bundled together mixes of minutes, texts and picture messages. There are no daily

limits or time of day restrictions and unused airtime can be carried over for another

month if you buy another bundle.

7. Boredom sucks, Virgin Mobile Bites

This is why Virgin Mobile has come up with 'bite-sized boredom-busters' available on

your mobile. Virgin Mobile Bites entertains our customers by offering exclusive content,

including celebrity gossip, music news and reviews and quizzes to keep boredom at bay.

8. Pay any way you like

Virgin Mobile offers customers a range of flexible ways to pay, including Pay Monthly

and Pay as You Go, and double value contracts when you buy direct from Virgin Mobile.

9. Enjoy great text

It costs just 3p to text another Virgin Mobile customer in the UK.

10. Great value roaming tariffs

Virgin Mobile makes roaming simple, offering good value, no-nonsense flat rate

international charges, for both pre-pay and pay monthly customers.

 OBJECTIVE
OF
THE
STUDY

Objective of the study

MARKET ASSESSMENT AND ANALYSIS OF VIRGIN MOBILE IN

KANPUR

The work done by me during the summer training:

During the summer training we have to go to the market with the systematic approach.

We went to market and observe that what is the percentage of virgin mobile against rest

of the companies of telecom sector. As Virgin Mobile is a new company of CDMA sector
so it was not easy to place the products of virgin mobile, as customers are already

satisfied with the schemes and offering of the existing companies.

But later with the enhancement in schemes and through better advertisement policies it

gained some position in the market. When people become aware of the company and its

offering, they start entertaining the company.

Responsibilities handled during the training:

During the training there were few responsibilities handled by me. The main of them

were

•As investigating officer.

•Advertisement in charge.

•Responsibility of opening of new counter.

•To short out the problems of retailers.

1. As investigating officer:

As an investigating officer I rendered following services,

 I went to retail outlets to check whether there was the proper visit of salesmen

taking place or not.

 How is the relation between retailer and the salesmen of the company.

 To check whether salesmen were giving the exact information about the schemes

at regular interval of time or not.

  I had also collected data regarding the feedback of customers from the retailers

that what exactly was requirement of the customers.

 We also compared the sales of Virgin Mobile and other existing company and try

to find out the reason for sales improvement.

Canter activity:

It was a road show in which there was a especially designed vehicle known as canter was

used. It was a trolley, which is pulled by a motorcycle. The design of the trolley was

forwarded from U.K. The advertisement activity was done by a Meerut based

advertisement company INTERFACE. Announcement about the product of virgin mobile

and pamplets distribution were the main attraction of this activity. My duty is to take that

canter in the main areas of the Kanpur market. In this activity, almost all the market of

Kanpur was covered the main areas were Govindnagar, Kidwainagar, Ramadevi,

Shyamnagar, Fazalganj, Nawabganj, Vijaynagar, Kakadev, Lalbangla, Jajmau, KDA

colony, Shastrinagar, Rawatpur, Swaroopnagar, Motijheel, Yashodanagar, Naubasta etc

.
The announcement of Virgin Mobile handsets

Fulfilling the query of the customers

Graphical representation of customer’s responses during canter

activity:

Canopy Activity:

It was two days activity in which there was an offer on Sleek handset. In this offer

customers would get two Sleek set at the price of Rs. 5,999/- only. This canopy activity

was held in two colleges namely Christ church college and G.S.V.M.college. This

scheme was launch on friendship day. My responsibility is to place the staff at the centre

and have a regular visit to there after regular interval of time. The target customers of this

activity was the student. This activity was very effective for creating awareness about

Virgin Mobile among students.

Nescafe coffee day activity:

In this activity, there was a tie-up between Virgin Mobile and Nescafe coffee day all over

India. The scheme in this activity was same as it was in canopy activity on Sleek handset.

This scheme was also launch on the friendship day. The target customer of this activity

the customer of Nescafe coffee day. The additional feature of this activity was the display

of advertisement of virgin mobile on the television set at cafe coffee day. My

responsibility is to place the staff at the centre and have a regular visit to there after

regular interval of time.

Supervision of CAF runner:

When I visited to the retail outlets and if there was no signage of company then I send

CAF runner along with POP material to that outlet for the placement of signage.

2. Responsibility of opening of new counter:

My duty was not only to visit to that retail outlet where Virgin Mobile has been placed

but also to those retail outlets where virgin mobile has been not reached yet. I tried to

place the products (RCV, Sim cards, handsets, E-top, etc.) to new outlets by telling the

advantages and benefits of Virgin Mobile. It is not an easy job to do because retailers

were already satisfied with the tight market of telecom industry, but anyhow I manage to

open some new counters.

 NEW COUNTERS

Date Retail outlet Address EVD RCV

02/06/09 S.M. Telecom 119/438 Darshanpurwa Kanpur Y

02/06/09 Sandhya PCO 118/490 Kaushalpuri Kanpur Y Y

02/06/09 Shukla PCO 107/272 Brahm nagar Kanpur Y

10/06/09 Hari Electricals 104A/150 Rambag Kanpur Y

10/06/09 Parihar Telecom 109/241 Nehru nagar Kanpur Y

1206/09 Anand Electricals Nehru nagar Kanpur Y

12/06/09 Vandna 119/526 Darshanpurwa Kanpur Y Y

Communication

18/06/09 Vishal Store 72/2 Block 8 Govind nagar Kanpur Y Y

18/06/09 Hi-tech electronics 5/1 A Vidyarthi market Govind Y Y

nagar

24/06/09 R.K. PCO 11/32 Gwaltoli Kanpur Y Y

24/06/09 Princ Electronic 14/5 Civil line Kanpur Y

24/06/09 Supper 11/31 Gwaltoli Kanpur Y

Communication

24/06/09 Muskan PCO 11/285 Shooterganj Kanpur Y

24/06/09 Rai PCO Shop 6 Idgah chauraha Kanpur Y

25/06/09 Maa Bhagwati Shop 9 Panki road kalyanpur Kanpur Y

Telecom

25/06/09 Vikram Communic 360 Panki road kalyanpur Kanpur Y Y

ation

25/06/09 Sri Raj Electronic Shop 1 Sidharth market Panki road Y

kalyanpur Kanpur

25/06/09 Sakham Mobile 56 Bithoor road Kalyanpur Kanpur Y

26/06/09 Simran Electronics 61/1 Vijay nagar Kanpur Y

26/06/09 Ambe electronics 232/5 Shastri nagar Kanpur Y

26/06/09 Alfa Telecom 297/9 Shastri nagar Kanpur Y

28/06/09 Manoj Communication Loknayak janta bajar Panki Kanpur Y

30/06/09 Anand book depo 125/2 k-Block Govind nagar Y

30/06/09 Umar medical store 125/1 k-Block Govind nagar Y

30/06/09 Tinku Mobile 125/54 Govind nagar Y

30/06/09 Sri satguru electronics 124/9 D Block Govind nagar Kanpur Y

01/07/09 Delux Telecom 110/123 80 feet road Y

08/07/09 Prem Graphics 118/103 Kaushalpuri Kanpur Y

08/07/09 Shivam Electronics 120/616 A Narayan purwa Y

16/07/09 Jai Communication Plot 7 Meerpur Cantt Y

16/07/09 YES Telecom 167 Meerpur Cantt Y

16/07/09 Universal Telecom 143 Jagai purwa Lal Bangla Y

16/07/09 Mahalaxmi Telecom 430 Pardevalpur Lal Bangla Y

16/07/09 Durgesh Electronics 253 B Kazi kheda Lal Bangla Y Y

16/07/09 Jaiswal Telecom Khapra Mohal Lal Bangla Y

New EVD Counter: 13

New RCV Counter: 29

Total New Counter: 35

3. To short out the problems of retailers:

When I went to retail outlet for observing and estimating market penetration of EVD and

RCV of Virgin Mobile there were so many complaints such as delay in activation,

problem of hanging of handsets, connectivity, settlement of claims, lack of

advertisement, etc came to known. I listen their problems and reported to the ASM for
the settlement these claims. If these problems were solved at regular basis it would

definitely help in the penetration of Virgin Mobile in the market. There is no regional

office and customer care centre of Virgin Mobile in Kanpur which was the main

complaint of retailers.

About Virgin Mobile EVD:

In the Virgin Mobile EVD we are giving 3.75% commission on every recharge. It is

greater than Reliance and Tata Teleservices.

Recharging procedure is: type ‘ERA_1234_MDN_Amount (in Rs.) and send it to

58576, after some time you will get the reply.

• MDN means customer mobile number,

• Amount means value of recharge voucher (type of recharge)

Call rates of EVD are as follows:

• Virgin Mobile to Virgin Mobile ---- Rs. 0.10
• Virgin Mobile to Other Network ---- Rs. 0.30
• STD Call Rates ---- Rs. 0.50
• Virgin Mobile to Virgin Mobile ---- 500 SMS Free
• Virgin Mobile to Other Network ---- Rs. 0.50/SMS

Virgin Mobile – (V Care)

For checking your Account Balance: Dial 125555 & Press “2”

To Recharge:

Step 1: Dial 125555 & Press “1”

 Step 2: Then dial 14 digit PIN number

Call Centre:

You can dial 125999 from your virgin mobile handset

Or

You can dial 18002094444 from any other mobile or landline

 RESEARCH

METHODOLOGY
 MARKETING RESEARCH

Market research and marketing research are often confused. ‘Market’ research is simply

research into a specific market, It is a very narrow concept. ‘Marketing’ research is much

broader. It not only includes ‘market’ research but also areas such as research into new

products or modes of distribution such as via the Internet. Here are a couple of

definitions.

Marketing research is the function that links the consumer, costumer, 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 understanding of marketing as a process. Marketing

research specifies the information required to address these issues, design the methods for

collecting information, manages and implements the data collection process, analyzes ,

and communicates the findings and implication

 RESEARCH PROCESS

S
The research methodology deals with the method involved in the process of data

collection and the way they are assessed. The data collection is the process of

collecting the information regarding the research problem to make the research

analysis relevant and to make the work more systematic.

There are two methods for data collection

Seconda
Primary ry
method method
PRIMARY METHOD

1. Primary Data: It is the data collected first hand relating to specific queries&

problem. Its main advantage is that the information its up to date. On the other it

is expensive and time consuming. The primary method is the method which is done

after the secondary data is collected. The desired information would be collected from

289 retailers for the purpose of research. The primary data collected by the following

method:-

Phone
Personal Interview Questionnaire Calls

Survey Sms E-mail

SECONDARY METHOD

It is information, which has been already collected for other purpose and is

readily available in some form. Its advantage is that it is readily available and

cheap while its disadvantage is that the data may be irrelevant. The collection

of secondary data is the initial process to collect the data than the primary method.

The secondary data collected by the following method:-

Magazine
Internet Journals

Company Books Newspaper

annual report
 RESEARCH METHODOLOGY

To achieve the objective of project there was some information which was to be gathered

and accordingly some decision had to be taken. The research was conducted to assess and

analyze the market of Virgin Mobiles in Kanpur. For this purpose a descriptive research

design was used which would ascertain magnitudes.

Customer Satisfaction is the crux of the success of any company. To achieve success, the

foremost thing is to be in pace with the customer needs. Clear, consistent and systematic

improvement is necessary to demonstrate that customer satisfaction is a strategic

Business objective.

Continuous improvement implies that Business philosophies must change to meet ever-

increasing expectations of the customers, and no doubt it is a challenging job.

To find out new customer, new market continuously for it’s products and services is also

a very important and critical phenomena for the success of any small, medium size or

large company.

Last but not the least one phenomena is also have a very big role in the success of any

organization and that is to keep continuous eye on it’s competitors and to know their

strengths and weaknesses and plan in such a manner to get competitive edge over it’s

competitors.
Hence, a research should be a step towards the awareness of the expanding needs of the

customers and thereby to meet them and to find out new potential and prospects and to

observe it’s competitors. Just as many dissatisfied customers do not register formal

complaints, Satisfied customers may not provide the feedback necessary to understand as

to why the satisfaction has occurred. Hence, a detailed research is required to know as to

what is lacking in the system and what can be done thereof.

A recent study of the corporate world has clearly established the fact that only such of

those corporations which have given their customers maximum value for their money,

have survived and further, only such of those companies that have gone beyond the stage

of satisfying the customers into delighting them by exceeding their expectations have

really grown beyond one’s wildest dreams. Various Methods used in preparation of

report are as follows:

RESEARCH OBJECTIVE:

1. To assess the market of virgin mobile in Kanpur.

2. To analyze the perception of the retailer of virgin mobile.

3. To analyze the level of market capitalization of virgin mobile.

SAMPLING

2. SAMPLE SIZE: 289 Retailers visits in the 19 geographical market of Kanpur city i.e.

Gumti no.5, Govind nagar, P.road, Jajmau, Lal Bangla, Rawatpur, Kakadev, Railbajar,

Gwaltoli, Aryanagar, Kalyanpur, Panki, Vijay nagar, Shastri nagar, Fajalganj, 80 Feet

road, Harsh nagar, Vishnupuri, Nawabganj.

3. METHODS OF DATA COLLECTION: Data were collected through Questionnaire.

4. RESEARCH DESIGN: Exploratory.

5. DATA SOURCE: The owners of the different- different Mobile retail outlets in

different-different markets.

 Primary Data- Face to face interviews using structured questionnaire.

 Secondary Data- Respondents selected from database of dealer provided

by the company

 Sampling method- Judgment sampling only those dealers were selected

who have taken Virgin Mobiles dealership few months back.

 Target Dealer – Dealers who have recently or few months back started

dealing with Virgin Mobiles.

  Area covered – Gumti no.5, Govind nagar, P.road, Jajmau, Lal Bangla,

Rawatpur, Kakadev, Railbajar, Gwaltoli, Aryanagar, Kalyanpur, Panki,

Vijay nagar, Shastri nagar, Fajalganj, 80 Feet road, Harsh nagar,

Vishnupuri, Nawabganj.

GROWTH OF MOBILE

16 February 2002

India's fast-growing mobile phone industry kept up its pace of heady growth in January

with subscriber base jumping nearly 75 percent over the same month last year, data

released by an industry body showed.

Figures from the Cellular Operators Association of India showed that the industry had

5.725 million subscribers, up from 3.27 million at the end of January 2001 and 5.48

million subscribers at the end of 2001.

The data showed that the industry added 246,281 users in January, led by the four main

city markets of Bombay, New Delhi, Madras and Calcutta, which together added 93,070

customers.

This was three percent less than the number of customers added in the previous month,

but up 48 percent over January 2001 levels.

Among firms which provide services in these four cities, New Delhi operator Bharti

Cellular, a unit of the soon-to-be-listed Bharti Tele-Ventures, recorded the highest

increase of nearly 31,000 customers during the month. COAI said the country's telecom

market with the lowest subscriber potential - called "C" circles - grew the fastest, but on a

much lower subscriber base.

The Indian government classifies the country's telecoms market into "metro" and "A",

"B" and "C" circles or zones, based on subscriber potential.

According to COAI data, the subscriber base in "C" circles leapt 99 percent while in the

lucrative "metro" market, it grew 81 percent.

The subscriber base in "A" circles grew 87 percent while the "B" circle grew nearly 49

percent.

At the end of January, metro circles had 2.25 million subscribers, "A" circles 1.96

million, "B" circles 1.3 million and "C" circles 200,656 subscribers, the data showed.
 DATA
Analysis
ANALYSIS OF DATA

After the data has been collected the researcher turns to the task of analyzing them. The

analysis of requires a number of numbers of closely related operations such as

establishment of categories, the application of these categories, to raw data through

editing, coding, tabulation and then drawing them statistical interference. Researcher

should classify the raw data into some purposeful and usable categories.

and usable categories.

ANALYSIS OF
DATA

CODING EDITING TABULATION

CODING

The operations is usually done at this stage through which the categories of data are

transformed into symbols that may be tabulated counted.

EDITING is the procedure that improves the quality of the data for coding and to

analyze the relevant facts within the data collected and the irrelevant facts are cut

down to make the data more significant for assessment. With the coding the stage is

ready for tabulation.

TABULATION is a part of the technical procedure where the data is classified and

are put in the form of tables. The construction of tables provide the structured frame

for technical solution making the research facts more systemized and more specific to

lay out the relevant analysis of data. After tabulation the work of analysis is generally

based on the computation of various percentage coefficient, etc. by applying various

well defined statistical formulae.

MARKET POTENTIAL FOR VIRGIN MOBILE

Low
Medium
High
INTERPRETATION

According to 82% retailers there is tremendously high market potential for Virgin

Mobile.
 M a r k e t P o te tia l fo r H ig h P r ic e P r o d u c t

Low
M e d iu m
H ig h
C a n 't S a y

INTERPRETATION:

According to 48% retailers’ market potential for High Priced product is high.
 Opinion about Virgin Mobile products in
Comparision to other Brand

Good
Saticfactory
Can't Say

INTERPRETATION

General opinion about virgin Mobile Product among retailers is good.

 Various Promotional Activities Distributors are
doing To promote Virgin Mobile Products

Insertion
Add in Newspaper
Road Show
Direct Selling
Banners
Just Diles
Cable Add
Customer Scheme
Tata Yellow Pages
Direct Mailers
Word of Mouth

INTPRETATION

There are a number of promotional activities which distributors are doing to promote

Virgin Mobile Products, but the most preferred are Road Shows, Insertion & Add in

Newspaper.
 Promotion al A ctivities w h ich D istribu tors
fou n d most effective on e

Inse rtion

A d d in Newsp ap er

C ano py

D irec t Marketing

EPP

C arnival

C an't S ay

A ny A ctivities can be effe ctive, D e p end s o n Marke t C ondition

INTERPRETATION

Canopy is the most effective promotional Activity.

 If Distributor is Advertising through print media then
most preferred media

Times of India
Hindustan Times
Local Magzin
Others

INTERPRETATION

If Distributor is advertising through print Media than Times of India is the most Preferred

Media.
 Satisfaction Level of Distributor

10% 0%
15%
Satisfied
Unsatisfied
Can't Say

75%

INTERPRETATION

Almost 75% Distributors are Satisfied with Virgin Mobile.

 Sales
RELIANCE 30%
VODAFONE 23%
BSNL 18%
AIRTEL 11%
IDEA 10%
TATAINDICOM 5%
VIRGIN 3%
INTRPRETATION

The market share of virgin mobile is 3% of total in Kanpur market.

 FINDINGS

FINDINGS
1.82% of the retailers possess that virgin mobile holds high market potential.

2. Retailers perceive that the potential of high priced products have a high.

3. Retailers possess good opinion about virgin mobiles.

4. The most effective promotional activities were Road show, insertion, Add in

newspapers and canopy.

5. Majority of distributors were satisfied with virgin mobile.

6. Market share of virgin mobile is 3%.

SUGGETIONS

AND

RECOMMANDAT

ION
 Company should do advertisement in Hindi being the most effective language in

Indian scenario because in India the Mother tongue is Hindi and most of the

people not know English so that the advertisement in Hindi are most successful.

 Company should to launch the new Topup coupons in which the talktime should

be full.

 The schemes & compensation of retailer should provide at the time.

 Company should provide the trained FOS who regulate the multimedia handsets.

 Virgin have large number of retailers but it is not supporting and take care all of

them equally which results in increasing discontentment among all the retailers

because it is not possible for a company to support all of them equally. Company

should take some positive action against it.

 Company’s executive should visit at retailers and distributors on regular basis.

 They should pay proper attention towards checking of various components of pc

before end user delivery. Otherwise it tends towards defame of brand name in

comparison to rivals.

 Need of customer care center as the consumer base of Virgin Mobile is increasing

with tremendously fast pace

 Proper attention should be paid for advertisement planning otherwise it may lead

to problem for distributor as well as company.

 Company should tie up some event management company to organize various

promotional activities like canopy, carnivals.

 Company should make policy for fixed end user price for all retailers and

distributors so that fair game will be played and retailers and distributors not to

compromise on their margin.

 \

CONCLUSION

Virgin Mobile is a U.K. based company. It is a group of 375 companies and it is launch

in India recently. Working for Virgin Mobile India Ltd. For two month is a big

opportunity for me. In the duration of two month, in this study it has been concluded that

the Indian telecom industry is very tuff market in this telecom industry to survive is very

difficult for new company because there is already six giant companies are present.

As for as Virgin Mobile India Ltd. is concern it is a very new company and it is difficult

to place its products and services to the retail outlet initially there was shortage of

advertisement by the company that result lack of awareness among public. But later, by

introducing some good scheme and advertisement, company is able to gain its position

among the manes. Company would definitely acquire a good share of market in the

coming future.
 Questionnaire
1. What is your view on the Market potential Virgin product?
a. Low
b. Medium
c. High
2. What is your view about the market potential about R.C.V. of Virgin
Mobile?
a. Low
b. Medium
c. High
d. Can’t Say
3. Which Company’s R.C.V. gives most Commission on setting ?
a. Virgin
b. Reliance
c. Idea
d. TATA
e. Airtel
f. Vodafone
g. B.S.N.L.
4. What is your view on Market potential of high price R.C.V. ?
a. Low
b. Medium
c. High
5. What is your opinion about the R.C.V. talk value ?
a. Good
b. Satisfactory
c. Can not Say
6. What is your opinion about the Extra Services provide by V.R.C. t the same
price?
a. Good
b. Satisfactory
c. Can not Say
7. Setting of R.C.V. with increase only by the setting of Handsets.
a. Yes
b. No
8. What your promotion activity for product and service?
a. Road shows
b. Direct selling
c. Cable Ad.
d. Banners
e. Customer scheme
f. word of mouth
g. Ad in newspaper
9. How much your satisfied with Virgin product & service?
a. Satisfactory
b. Unsatisfactory
c. Can not Say
10. Which promotion activity is most effective ?
a. Insertion
b. Canopy
c. Ad in Newspaper
d. Direct marketing
e. Depend upon Market condition
11. Do you satisfying with commission and schemes of Virgin Mobiles?
a. Satisfactory
b. Unsatisfactory
c. No comments
12. Which way you are preferring more to recharge the Virgin phone.
 a. R.C.V.
b. E.V.D.
13. How much you sell the Virgin product in (Rs.)
a. Below 1000
b. 1000-5000
c. 50000-10000
d. 10000-25000
e. 25000-50000
f. 50000 above.
14. Which mode do you have for recharge the Virgin Mobile phone ?
a. R.C.V.
b. E.V.D.
c. Both
15. Which Company’s product you are selling more?
a. Virgin
b. TATA
c. Reliance
d. Idea
e. Airtel
f. Vodafone
g. B.S.N.L.
 BIBILIOGRAPHY

BOOKS

Marketing Management 12e ----------- Philip Kotler

Marketing ----------- D. Gandhi

Marketing Research an applied orientation 5e ----------- Naresh K. Malhotra

WEBLIOGRAHY

WEBSITE DATE TIME

WWW.virginmobile.in 17 Oct. 2009 6:17 p.m.

WWW.google.co.in 21 Oct. 2009 5:46 p.m.

WWW.wikipedia.com 02 Sep. 2009 7:30 p.m.

WWW.altavista.com 05 Sep. 2009 4:38 p.m.