EXECUTIVE SUMMARY

The telecom industry in India has been growing at a scorching pace in recent years. Teledensity, which was languishing at 20% or so in 2004 has shown an impressive jump to around 42% in 2011. We have moved decisively from an environment that was monopolized by state owned companies, and in which there was huge unmet consumer demand for telecom services, to one that is characterized by intense competition among several players, and availability of quality telecom services on demand at very affordable prices. Much of this has happened because of the wireless revolution taking place in the country, as is happening globally. The government, on its part, has played a key enabling role by deregulating and liberalizing the industry, ushering in competition, and paving the way for growth. While there were regulatory uncertainties earlier, resulting in litigation, these have all been addressed now.

Idea has been a pioneering force in the telecom sector with many 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. Idea Enterprise Services ensures Business@Ease for top identified key corporate accounts in India. Enterprise services provide comprehensive telecommunication services by synergizing and making all the products and services available through a single window interface. idea handles the complete business relationship including sales, customer service, business development and corporate relationship management.

I take pride to be part of this esteemed organization to understand organizational work culture and for opportunity got to do market survey on the costumer satisfaction towards in Bijapur city usage of Idea 3G products and services

A.S.P College of Commerce, MBA Programme

OVERVIEW
Name Year of Establishment Idea 1995

Company Profile

Idea Cellular is part of the Aditya Birla ,which is India's first truly multinational corporation. Aditya Birla Nuvo Ltd. holds 35.7 percent, Birla TMT Holdings Ltd. 44.9 percent, Grasim 7.5 per cent, and Hindalco 10.1 percent in Idea.

Global Presence/ Marketing Network

Has a customer base of over 17 million, IDEACellular has operations in Delhi, Maharashtra,Goa, Gujarat, Andhra Pradesh, MadhyaPradesh, Chattisgarh, Uttaranchal, Haryana, UP West, Hibachi Pradesh and Kerala.

Acquisitions / Strategic Alliances

Merged with Tate Cellular Limited in 2001, thereby acquiring original license for the Andhra Pradesh Circle Acquired RPG Cellular Limited and consequently the license for the Madhya Pradesh (including Chattisgarh) Circle in 2001 In2004 acquired Escotel, incumbent cellular service provider in Haryana, UP(W) & Kerala and new licensee in HP Acquired Escorts Telecommunications Limited (subsequently renamed as Idea Telecommunications Limited) in 2006 Merger of seven subsidiaries with Idea Cellular Limited in 2007

Future Prospect

Idea also plans to enter rural and neglected circles as a strategy to gain subscribers. Other advancements in the telecom industry will help it cut costs - use of e-mail to send bills to customers; sharing cell sites; smaller base transmission stations that will mean lesser infrastructure requirements and expenses and independent tower operators. Along with its plan to go for a national long distance license, international

A.S.P College of Commerce, MBA Programme

IDEA Cellular is a publicly listed company, having listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) in March 2007. Idea is the 3rd largest mobile services operator in India, in revenue terms, and recorded a subscriber base of over 93.75 mn as of 31st May 2011. It became a pan-India integrated GSM operator covering the entire telephony landscape of the country, and expanded its NLD and ILD operations in FY 2010. During the year, Idea increased its revenue market share by over 1%, despite stiff tariff war in the market. The company has won license to offer 3G services in 11 service areas, which generate over 81% of the companys total revenue. Ideas 3G services will be launched in the year 2011. Ideas strong growth in the Indian telephony market comes from its deep penetration in the non-urban and rural markets. Idea has the highest share of rural subscribers as a percentage of total subscribers, amongst other GSM players. In fact, two out of every three new subscribers now come from non-urban market. Ideas innovative and revolutionary VAS offering has been a major growth driver. Be it Mobile TV, which was launched for the first time in India on the Idea network; exhaustive Music library in multiple languages; DTs/ RBTs; and other content download from the world of Cinema, Music, Cricket etc. Idea has consistently grown its VAS revenue. Its revenue share of VAS is now higher than the industry average. Idea offers seamless coverage to roaming customers traveling to any part of the country, as well as to international traveling customers across over 200 countries. Ideas partnership with over 400 operators ensures that customers are always connected while on the move, within the country or other parts of the world. IDEA is the winner of The Emerging Company of the Year Award at The Economic Times Corporate Excellence Awards 2009. IDEA Cellular also received the prestigious Avaya Global Connect Award for being the Most Customer Responsive Company in the Telecom sector in the year 2010. The company has received several other national and international recognitions for its path-breaking innovations in mobile telephony products & services. It won the GSM Association Award for Best Billing and Customer

A.S.P College of Commerce, MBA Programme

Care Solution for 2 consecutive years. It was awarded Mobile Operator of the Year Award India for 2007 and 2008 at the Annual Asian Mobile News Awards. IDEA Cellular is an Aditya Birla Group Company, Indias first truly multinational corporation. The group operates in 26 countries, and is anchored by over 130,600 employees belonging to 40 nationalities. The Group has been adjudged the 6th Top Company for Leaders in Asia Pacific Region in 2009, in a survey conducted by Hewitt Associates, in partnership with The RBL Group, and Fortune. The Group has also been rated The Best Employer in India and among the Top 20 in Asia by the Hewitt-Economic Times and Wall Street Journal Study 2007.

A.S.P College of Commerce, MBA Programme

CORPORATE PROFILE
Mission

Values Integrity - honesty in every action At Aditya Birla Group, Integrity is defined as: Acting and taking decisions in a manner that is fair, honest, following the highest standards of professionalism and also perceived to be so. Integrity for us means not only financial and intellectual integrity, but in all other forms as are commonly understood. Key words that connote Integrity are:

Ethical Truthful Principled Transparent Upright Respectful

Commitment - deliver on the promise At Aditya Birla Group Commitment is defined as: On the foundation of integrity, doing whatever it takes to deliver value to all stakeholders. In the process, taking ownership of our actions and decisions, those of our team and that part of the organization that we are responsible for. Key words that connote commitment are:

Accountability Discipline Responsibility Result -orientation Self-confidence

A.S.P College of Commerce, MBA Programme

Passion - energized action At Aditya Birla Group Passion is defined as: A missionary zeal arising out of emotional engagement with the organization that makes work joyful and inspires each one to give his or her best. Relentless pursuit of goals and objectives with the highest level of energy and enthusiasm, that is voluntary and spontaneous. Key words that connote passion are:

Intensity Innovation Transformational Fire-in-the-belly Inspirational Deep sense of purpose

Seamlessness - boundryless in letter and spirit At Aditya Birla Group, Seamlessness is defined as: Thinking and working together across functional silos, hierarchies, business and geographies. Leveraging the available diversity to garner synergy benefits and promote openness through sharing and collaborative efforts. Key words that connote Seamlessness are:

Teamwork Integration Involvement Openness Global Learning from the best Empowering

Speed - one step ahead always At Aditya Birla Group, Speed is defined as: Responding to internal and external customers with a sense of urgency. Continuously seeking to crash timelines and choosing the right rhythm to optimize organization efficiencies.

A.S.P College of Commerce, MBA Programme

Key words that connote Speed are:

Response time Agile Accelerated Timelines Nimble Prompt Proactive Decisive

A.S.P College of Commerce, MBA Programme

The Team Board of Directors Mr. Kumar Mangalam Birla (Chairman) Smt. Rajashree Birla Mr. Himanshu Kapania Mr. Arun Thiagarajan Ms. Tarjani Vakil Mr. Mohan Gyani Mr. Gian Prakash Gupta Mr. R.C. Bhargava Mr. P. Murari Mr. Biswajit A. Subramanian Dr. Rakesh Jain Mr. Sanjeev Aga Mr. Juan Villalonga Navarro Dr. Hansa Wijayasuriya (Alternate to Mr. Juan Villalonga Navarro) (Managing Director)

A.S.P College of Commerce, MBA Programme

Management Team Corporate Leadership Team Mr. Himanshu Kapania Mr. Ambrish Jain Mr. Akshaya Moondra Mr. Anil K Tandon Mr. Prakash K Paranjape Mr. Navanit Narayan Mr. Vinay K Razdan Mr. Rajat K Mukarji Mr. Rajesh K Srivastava Mr. P Lakshminarayana Mr. Sashi Shankar Mr. Subbaraman Iyer Managing Director Deputy Managing Director Chief Financial Officer Chief Technology Officer Chief Information Officer Chief Service Delivery Officer Chief Human Resources Officer Chief Corporate Affairs Officer Chief Commercial Officer Chief Operating Officer, Corporate Chief Marketing Officer Chief Operating Officer, National Enterprise Business

Circle Heads Mr. T. G. B. Ramakrishna Mr. Monishi Ghosh Mr. Sanjeev Govil Mr. Arul Bright Mr. Siva Ganapathi Mr. Vinu Verghese Mr. Rajendra Chourasia Mr. M. D. Prasad Mr. Sunil Tolani Mr. Anish Roy Mr. Puneet Krishnan Mr. M. Srinivas Mr. Rajesh Naik Mr. Naozer Firoze Aibara Mr. Sudhir Pradhan Chief Operating Officer, Andhra Pradesh Senior Vice President - Operations, Bihar Chief Operating Officer, Delhi & Haryana Senior Vice President - Operations, Gujarat Chief Operating Officer, Karnataka Senior Vice President - Operations, Kerala Chief Operating Officer, Maharashtra & Goa Senior Vice President - Operations, Mumbai Chief Operating Officer, Madhya Pradesh & Chattisgarh Chief Operating Officer, Punjab, J&K and HP Senior Vice President - Operations, Rajasthan Senior Vice President - Operations, Tamil Nadu & Chennai Chief Operating Officer, Uttar Pradesh (East) Chief Operating Officer, Uttar Pradesh (West) Chief Operating Officer, WB & Kolkata, NESA & Orissa

A.S.P College of Commerce, MBA Programme

Partners VAS ( Value Added Services )

Onmobile Asia Pacific Ltd

Cellebrum India Ltd

Siddhivinayaka Astro Services Ltd

Kodiak Ltd

Mauj

Net4nuts Pvt India Ltd

Sify

Rediff

NDTV

Roaming

Roamware.inc

Starhome

Bharti Telesoft

Marketing

Lowe India Pvt Ltd

Mind Share

A.S.P College of Commerce, MBA Programme

10

Public relations

Imprismis PR

Billing

Atos Origin

A.S.P College of Commerce, MBA Programme

11

PRODUCTS
1. a. Voice Services GSM PRI Gateway

GSM

Gateway

caters

specifically to the requirement of medium to large enterprises with large number of extensions and EPABX installation. Idea GSM PRI Gateway is the solution for cost effective direct connection to the mobile network. The GSM Mobile Gateway provides the possibility to cut costs in the following ways: Calls from the desktop telephone / PSTN network to the GSM network are expensive, so the Idea GSM PRI Gateway routes these calls from the PBX to the GSM Network via its own SIM cards and GSM Engines converting the call, instead of Fixed Line to GSM, but to a GSM to GSM call, in some cases this could be a cost reduction of up to 50 percent

Basic Features of the Idea GSM PRI Gateway :

Combinations of interfaces: E1, PRI (Primary Rate Interface), BRI and GSM. SMS - Email - SMS functionality, allowing Emails to be sent as an SMS and vise versa, emails SMS can be received as emails also to multiple targets.

Call Data Records show all required information e.g. Port ID, Interface ID, ISDN B Channel, and the ICC ID (SIM Card ID).

Remote maintenance with the Trace Info Client shows detailed Information, Fallback to other Trunk Groups if call fails and Call Data Records.

Advanced Features of the Idea GSM PRI Gateway

The monitoring software allows realtime Call Server details either via ISDN or IP, including SIM card ID, Causes, Duration of call, call charge, Port ID and B Channel and all other relevant required information.

A.S.P College of Commerce, MBA Programme

12

Call Home events to the Network Management system for automatic upgrades upload of CDR'S to your server, SIM Budget information, and refresh of SIMs, either via ISDN or IP.

Advanced Trace Info functions with precise SIM individual information

Summary of Benefits

A cost effective access to the GSM telecommunications Network for incoming and outgoing calls.

Fast GSM call set-up. No more bottlenecks with calls having to be routed first through the fixed network.

The GSM Gateway can be positioned before or after the PABX. Full Remote control management system, via Local connection, ISDN dial-in or via IP, allowing Real time monitoring down to each individual SIMcard/GSM Channel and also reloading of SIMcards, for changes in budgeting whether time or price dependant.

b.

Fixed Cellular Terminals (FCT)

IDEA FCT is a single line PSTN simulation made available on GSM network. This product converts GSM calls to normal analog telephone line with an output similar to existing PSTN environment with all the basic features of Voice & Data*. It seamlessly integrates with any EPBX/Desk phone diverting calls made from fixed lines to mobiles through the SIM card, making them mobile to mobile calls.

Who it's for A fixed cellular terminal would most suit companies that make a lot of calls from fixed line office phones to mobile phones either of Idea or other of any other operator. Fixed cellular terminals divert mobile traffic from fixed line phones through a SIM card in the fixed cellular terminal allowing subscribers to take advantage of the cost of mobile to mobile call instead of a fixed line to mobile call thus giving a saving of more than 50%. How it works Installing a GSM gateway alongside EPBX (Switch) has no effect on the Switch. When a call is made that has a Mobile prefix (09) the gateway detects the number being dialed is a mobile number and

A.S.P College of Commerce, MBA Programme

13

automatically routes it through a Sim card in the Gateway. Normal Land Line to Land Line calls pass straight through the Gateway and onto the fixed line network as normal.

Benefit * Cost Reduction in Telecom Bill: By routing the mobile terminating calls through Idea, enterprises can save money to the extent of 20-25% on their bills. Idea also offers lower STD/ISD tariffs than landline operators; hence savings can be much higher for cos. with multi-location offices and clients. This feature is called Least Cost Routing. It enables automatic routing of mobile terminating calls thru GSM, while routing landline calls thru PSTN network. * Reach: FCTs can be used even in remote locations where landline connectivity is not available. This is primarily true for city outskirts and rural areas. * * Reliability of service by being on GSM as against landline Unmatched Features of GSM: FCT enables a customer to do almost everything from a desktop phone that is possible from an Idea mobile phone. Call features like call waiting, divert, hold/swap, conferencing, SMS sending and receiving, abbreviated dialing etc. are all possible on FCT. * Additional Features: FCT also enables blocking or enabling calls to certain nos., tracking call details like duration, last few calls and call charges, hotline functionality and many more. * Easy integration with EPBX in multi user enviornment

Features * * * * * * * Built in Caller ID Superior voice quality SMS send/ receive External/ internal battery recharging circuit External/ internal battery recharging circuit High gain antenna options Polarity reversal

A.S.P College of Commerce, MBA Programme

14

2.

Business Solutions

a.

Remote Energy meter reading Solution

Remote meter reading is an area focused on the automatic reading of meters - the nonmanual collection, storage and utilization of data from meters for monitoring and increasing the efficiency of processes. Applications lie mainly in the area of Utility services and include power, water and gas.

Today most of Power distribution companies are looking at ways to collect data & control (on/off) systems remotely. They need data transfer from one point to another: From Consumer meters to their server for billing From the Distribution Transformers to check leakages Street light control data Grid to grid data transfer & many more

Benefits of remote meter reading & control Efficiencies arising out of automating and systemizing areas like Meter Reading, Billing, payment of bills through e-Commerce etc. Checks corruptions / prevent meter tampering Reduces cost of collecting readings Reading may be pulled any time during the month Much more data can be pulled like peak load, usage pattern etc. Ultimate customer satisfaction. Analysis and useful interpretation of usage trends. Readings from difficult to access meters. Meter reader safety. Accurate tracking of demand.

Idea Cellular Ltd. plays the role of a carrier in this application. Hence, Ideas scope includes providing GPRS & SMS services with appropriate tariff. Providing hardware for Remote Energy
A.S.P College of Commerce, MBA Programme 15

Meter, software for input and output of data at the vehicle level as well as at corporate customers end, and managing all allied services related to the same falls in the scope of a vendor/service provider. This vendor is usually engaged by the customer directly, though Idea can give recommendation of preferred partners.

b.

Vehicle Tracking System

VTS enables businesses to keep track of their fleets of vehicles through a VTS unit installed in a vehicle. VTS unit has a GPS device (to take the location coordinates), GSM modem (which is programmed to initiate an outgoing SMS / GPRS session) and a GSM SIM card.

The GPS receiver captures position data from the satellites, computes the position of the vehicle and sends this information to a central base station, using SMS / GPRS. This information is collected by web-server at the base station & location information is plotted using GIS maps.

Idea Cellular Ltd. plays the role of a carrier in this application. Hence, Ideas scope includes providing GPRS & SMS services with appropriate tariff. Providing hardware for Vehicle tracking unit, software for input and output of data at the vehicle level as well as at corporate customers end, and managing all allied services related to the same falls in the scope of a vendor/service provider. This vendor is usually engaged by the customer directly, though Idea can give recommendation of preferred partners.

A.S.P College of Commerce, MBA Programme

16

3.

GPRS Application

a.

Internet on mobile

Idea's 3G compatible network supports General Packet Radio Service (GPRS), which allows you to access Internet websites and information portals on your mobile, making it possible to stay informed and remain truly connected in this dynamically changing and competitive environment. Gone are the days when connecting to a website from the mobile took as long as 2 - 3 minutes. GPRS compatible handsets ensure that as a user, you are "always on". There is no need for a dial up connection or any ISP connection. Now you can now carry the World Wide Web in their pocket - The Idea World. Read email, get stock quotes, check the weather, read the latest news and even chat with friends and "Buddies" on Idea Network, Yahoo, MSN and ICQ while on the move.

One of the mind-blowing applications on GPRS is Multimedia Messaging Service (MMS). Idea is among the pioneers in the country to provide MMS. This latest innovation in the area of mobile communication provides you the ability to communicate not just in voice or text but also in full colour images. Now you can send your emotions to your near and dear ones; with photographs, attach voice clips and append text too. Just in case the receiver does not have an MMS handset, even then the photographs can be accessed from our website

www.ideacellular.com/webmms. For your convenience, we have also created a library of photo album and voice clips, from where you can choose and send photographs. Further, you can also compose your own MMS message on the above mentioned website and send it across to a cellular phone or any e-mail ID.

With the introduction of GPRS on its network, Idea also supports the use of the GPRS phone as a modem, providing busy lap top armed executives, like most of you; the opportunity to log in wirelessly while "on the go". Thus now you can surf the internet using our GPRS connectivity with your computer.

A.S.P College of Commerce, MBA Programme

17

b.

Idea NetSetter USB

Idea Cellular has launched the new Net Setter EG612 USB Modem (usable with both desktops & Laptops) with data, & SMS facility. It is a conveniently slim & stylish solution for internet access on the move. USB modem is a dedicated data access (GPRS) device to be used with desktops / laptops for wireless internet (GPRS) access. Idea Net Setter is a terminal available for high-speed wireless network access, with which the users can access the Internet in the wireless way at home, office, outdoor sites and so on.

A.S.P College of Commerce, MBA Programme

18

MARKET SUSTAINABILITY
Ideas Sustainability Initiatives

Telecom services are recognized world-over as an important tool for the socio-economic development of a nation. It is one of the prime support services essential for rapid growth and modernization of various sectors of the economy. In India too, the telecommunication sector has revolutionized the way we communicate and share information, thereby helping over 800 million Indians stay connected, over the last two decades. The telecom industry globally is cognizant of the fact that it needs to lighten its carbon footprint. And, in the Indian telecom sector, Idea is leading the search for green energy options.

Idea Cellular, part of the Aditya Birla Group which is Indias first truly global conglomerate, is one of the oldest players in the Indian telecom industry and has played a key role in the development of mobile telephony, particularly in rural India. As part of a socially responsible corporate group, Idea has and continues to adopt policies, and business strategies to effectively integrate emerging environmental, social and economic considerations.

Whether its through conserving energy, recycling, or finding innovative solutions to environmental and social challenges, Idea is committed to being a respectful, responsible and positive influence on the environment and the society in which we operate. Efficient power management, infrastructure sharing, use of eco-friendly renewable energy sources, leveraging the latest in technology to reach out to a large audience in most energy efficient manner such as video and teleconferencing, smart logistics, etc. are some of the best practices in our network infrastructure and day-to-day business operations, to ensure a clean and green environment. Network Infrastructure initiatives In our effort to give back to the environment and reduce the collective carbon foot print of the telecom sector in India, Idea pioneered the concept of Shared Telecom Infrastructure services, along with a few other industry leaders in the wireless space. This initiative is

A.S.P College of Commerce, MBA Programme

19

committed towards continuous innovation endeavors; optimization of future tower rollouts; and enhanced operational efficiencies leading to a substantial reduction of carbon foot print.

The Indian telecom industrys first collaborative, cross-industry consortium to encourage the development of environmentally sustainable mobile networks was also led by Idea, and supported by the GSMA. The pilot, aimed at developing biofuels as a source of power for wireless networks in rural India which are located beyond the reach of the national electricity grid, was conducted in parts of Andhra Pradesh and Maharashtra. The learnings of the research were later handed to the infrastructure company which owns the towers, to explore broad basing of the program.

In a bid to reduce energy consumption by our BTS, Idea chose OD BTS (outdoor BTS) as our preferred BTS type in 2007. Currently, over 40% our total BTS portfolio comprises of OD BTS, which has resulted in reducing our conventional energy consumption by about 25% as compared to the ID BTS (indoor BTS). Efforts are also on to re-deploy ID BTS to OD BTS sites, in some locations, which will further reduce energy consumption at these sites by 25%. Idea has explored a Solar Hybrid Solution for running our BTS in parts of rural Bihar. We plan to install Solar Hybrid sets at 200 sites by end of FY 12. This will reduce the fuel consumption of power generator from running for 15-16 hours to less than 5 hours a day in these locations. Idea is also part of the Fuel Cell project, initiated by our Group. The project aims at exploring the usage of Hydrogen as an alternate energy source to power mobile base stations. Currently, a trial project, if successful, this program has the potential of reducing the usage of a regular power generator to Zero. Additionally, we are working on a range of other projects all of which are aimed at experimenting alternate energy sources to fuel base stations and reduce operating expenditure for the company.

Communication initiatives

With a subscriber base of nearly 10 crore, we have an opportunity to influence a large mass of people by promoting green initiatives through our various communication programs and customer service initiatives.

A.S.P College of Commerce, MBA Programme

20

It was Idea which germinated the thought of Use Mobile, Save Paper in the minds of millions of mobile users in India, with its aggressive yet thought provoking campaign. Idea designed the campaign to highlight numerous ways of saving paper, and thereby saving the green cover necessary for the health of the planet, by using a range of mobile based value added services in day-to-day activities to replace paper.Idea was amongst the first mobile operators in India to promote v-Top up recharges for prepaid users, in a major way. Soon, this led to the virtual phasing out of paper-based recharge vouchers, which has ultimately resulted in saving tonnes of paper which would have otherwise been used in making recharges available to millions of mobile users across the country.

Another recent and ongoing initiative is e-Bill which is being consistently promoted by Idea to ensure that more and more users opt for this service, and contribute towards saving paper. Breaking all conventions, Idea has now conceived another innovative program which is aimed at reducing plastic consumption on a large scale. In a major overhaul of its logistics management, Idea has now introduced the PICO card, which is a half-size plastic card that bears the SIM card, in a new connection kit. For decades, new mobile users have been handed out welcome kits by operators which carry a large size plastic piece with the SIM card inserted in the box. Idea has now become one of the first operators, globally, to introduce the new PICO card which is expected to save over 90% of plastic used in manufacturing regular cards. Considering that Idea adds about 2 million new connections every month, this initiative would result in substantial reduction of plastic usage.

As a company listed on BSE and NSE, Idea has a base of over 360,000 shareholders who we communicate with, on a regular basis. All company communication to our shareholders and investors, such as Notices, Annual Reports etc. are sent through e-mail rather than printed copies through post, thus dramatically reducing our printing and mailing costs while making a positive impact on the environment.

A.S.P College of Commerce, MBA Programme

21

Employee based initiatives

Ideas HR operations have all been enabled online for its over 7,000 employees, to ensure that there is minimal paper documentation. This has again helped us save tonnes of paper that would have been used in day-to-day HR related transactions and communication. We use smart ICT solutions such as teleconferencing, videoconferencing, web chats etc. for internal communication amongst employees to minimize travel.

We believe that Idea employees are the flag bearers of the organization. They enable the organization to realize its mission and goals, and meet commitments. Idea employees have played a key role in keeping our pledge to do our bit for the environment. Bus Karo is an initiative centered around a large group of Idea employees who commute to office, daily in their own cars. Through the program these employees use a pooled bus service for office commuting in peak hours, everyday. One such bus potentially lessens 30 cars from everyday traffic jams, saving over 1200 tones of Carbon emissions per annum.

Driven by its socially conscious parent Group, Idea stays committed to the cause of giving back to the environment. We will continue to drive our efforts towards environment sustainability by reducing carbon foot print and energy consumption.

A.S.P College of Commerce, MBA Programme

22

ABOUT 3G
3G services for mobile devices have been introduced by various handset creators and cellular carriers. The companies, however, are not very good at explaining the exact details, except for a given few. There seems to be a missing link between the current standard from previous services provided by 2.5G or 2G technology. Knowing the types and details will help you pick the right tools for your personal use or business..

Features

1.

About 3G Technology

3G cellular technology is defined as the provision of wireless broadband data and information services right to a persons mobile unit. Compared to the previous technologies, 3G promises speeds ranging from 144 Kbps, which is 3 times faster compared to the traditional 56K dial-up modem connection up to 2.4 Mbps, which is very near cable-modem speed. The networks of 3G allows you to browse quickly through web pages, watch on-demand video programs, download and play music, videos and 3D games, watch streaming videos and music videos and have a video conference with others located on the other side of the plant.

2.

More Developments

The HSDPA is a new technology, which may also be called 3.5G, coming very soon. This offers fasters speeds of up to 7.2 Mbps and also promises the likes of 14.4 Mbps very soon. The interface is very much different on a cellular phone, but other experiences like downloading, streaming, web browsing and sending messages and email can be very comparable to a computer broadband connection. As of the present, there are 3 big carriers that introduced and launched 3G services. There is also a wide array of 3G-enabled handsets now. In early 2005, Verizon Wireless first marketed the devices. Sprint and Cingular followed soon after. Cingular is now known as AT&T. T-Mobile is also joining the pack as it introduces its new 3G network in 2008.

A.S.P College of Commerce, MBA Programme

23

3.

The Accesses

Currently, 3G technology is the most recent in mobile communications. 3G is the shorter term for third generation, making analogue cellular technology generation one and digital/PCS generation two. The 3G technology is planned and devised for the real multimedia cellular phone, also known as smart phones. These tools feature higher bandwidths and transfer rates to cater to web-based applications and phone-based video and audio data files. The most common include CDMA 2000, which is based on code division multiple access, TD-SCDMA, which stands for Time-division Synchronous Code-division Multiple Access and WCDMA or UMTS which stands for Wideband Code Division Multiple Access.

4.

The Networks

3G networks have the capability of transferring speeds up to 3 Mbps which is equivalent to around 15 seconds for every download of a 3-minute MP3 song. To compare, the speediest 3G cellular phones can move speeds up to 144 Kbps, which is equivalent to around 8 minutes to download a 3-minute MP3 song. The high data rates of 3G are recommended when downloading or acquiring information online, as well as sending and receiving huge multimedia files. 3G phones are comparable to small laptops that can cater to several broadband applications like browsing the internet, receiving streaming videos online, video conferencing and sending and receiving faxes. The soaring towers are among the most important element of the group, allowing the data to be transferred from one hone to another. 3G basically is a cellular phone network protocol.

If you want augmented bandwidth, multiple mobile applications and clarity of digital signals, then 3G (Third Generation Technology) is your gateway. GSM technology was able to transfer circuit switched data over the network. The use of 3G technology is also able to transmit packet switch data efficiently at better and increased bandwidth. 3G mobile technologies proffers more advanced services to mobile users. It can help many multimedia services to function. The spectral efficiency of 3G technology is better than 2G technologies. IMT-2000.

A.S.P College of Commerce, MBA Programme

24

3G market in India

The world is fast changing with increasing trends in the communication sector. Drastic shifts have happened in the way people used to communicate. The adoption of technology, not only in the metros but also in the rural areas is observed in todays time. This is primarily due to the growing consumer awareness and adaptability towards newer technologies. In todays scenario, the increasing use and understanding of technology is augmenting the growth of the communications market in India. The communication market in India is fairly influencing the growth, especially of the mobile handset and service providers. Following are some interesting statistics supporting the same: As of May, 2011, the mobile subscription base stands at more than 811 million in India which is the worlds second highest after China. The most interesting part about these millions of subscribers is that they are fast changing their preferences to a better mode of communication. No doubt about the fact that the 2G market in India is one of the fastest-growing mobile services markets in the world but the change to 3G is happening. An example of how big 3G is with respect to Indian markets is, GOI expecting INR 35,000 earned INR 67,719 crores against in the 3G spectrum auctions.

Analysis of the present and future of 3G market in India:

1.

Consumer Switch: Elite subscribers in the high-spending tech-savvy segment are likely to shift from 2G to

3G services. A variety of consumers are shifting from 2G to 3G networks primarily in the urban areas where consumers have shown a higher preference for data services and have better affordability. Currently there are around 11 million 3G users in India but the number is expected to reach 400 million by 2015.

2.

Pricing: The pricing strategy adopted by various players is very competitive and cheap to start

with. The current rates being offered at discounted prices for consumers to experience the service

A.S.P College of Commerce, MBA Programme

25

and then take a decision is being adopted. 3G is being looked at a long term investment with high returns.

3.

Handsets Sales: The decreasing price of 3G enabled handsets is also aiding the whole business. The

increasing affordability across different demographics in India is also one of the driving factors. Thus we expect the 3G market to grow invariably.

4.

Tariff Plans: The tariff levels in India are among the lowest in the world, and this is the primary reason

for the wide adoption of mobile services in the country. The mobile penetration rate is expected to reach 97 percent by 2015, with the rural population expected to adopt mobile services.

5.

Communication & Entertainment: The increasing use of applications on 3G phones is set to drive the sales and awareness as

well. This in turn will also act as a revenue generation business for TSPs in the future. The growing popularity of mobile entertainment is a significant growth factor as access to mobile games and video-based content would need high speed. This would result in increased adoption of 3G services.

6.

Security Concerns: The GOI has always raised a concern on the telecom handsets that is being imported in

India. This has largely affected the TSPs network expansion and 3G rollout plans. However, the recent lift of the ban on importing equipment from Chinese vendors is likely to improve this situation. On the whole, the future of 3G looks bright in India but again it clearly depends on factors such as availability of 3G handsets at affordable prices, attractive pricing schemes to suit the needs of Indian consumers and innovation & localization of mobile content. The telecom service providers will always need to deploy innovation and build a comprehensive value proposition to target consumers in India.

A.S.P College of Commerce, MBA Programme

26

RESEARCH METHODOLOGY
Marketing Research

Marketing research is the function that links the consumer, customer, and public to the marketer through information--information used to identify and define marketing opportunities and problems; generate, refine, and evaluate marketing actions; monitor marketing performance; and improve understanding of marketing as a process. Marketing research specifies the information required to address these issues, designs the method for collecting information, manages and implements the data collection process, analyzes the results, and communicates the findings and their implications

The Information sources can be classified into Primary and Secondary data. Primary data can be described as that which is collected by the researcher himself, and/or his agents. It is to answer the research question. Secondary data are studies conducted by others for their own purposes. The advantage of using primary data is that researchers can collect precise information they want. They usually specify the operational definitions used and can eliminate, or at least monitor and record, the extraneous influences on the data as they are gathered. The primary data for this research is collected through Questionnaires.

Questionnaire :

The Questionnaire is used due to its ease of administering and also that it can be designed to elicit data that can be analyzed statistically. The respondent can also take more time to think and respond than with the personal interviews.

Problem Questions : a. b. How to assess the market of 3G in Bijapur City ? Having assessed the market potential, what strategic marketing initiatives should be taken fulfill the competition ?

A.S.P College of Commerce, MBA Programme

27

Research Objective:

a. b.

To examine the scope of 3G in Bijapur City. To make an independent assessment of the of the market potential in the light of competitive scenario.

c.

To recommend appropriate marketing strategy to exploit the market potential.

Sample size :

a.

The sample size is 50 representing market of Bijapur city.

Research Design :

a.

We seek to generate data through structured questionnaires blended with personal interviews with a randomly selected group of prospective customers ( including B2B customers ) and key personnel of the company, and IT dealers.

b.

Data generated will be subjected to rigorous statistical treatment, applying appropriate statistical tools which depend on the distribution of the sample data.

A.S.P College of Commerce, MBA Programme

28

DATA ANALYSIS AND INTERPRETATION

1. Type of computer used

Type of computer Laptop Desktop PC

Respondents 31 19

50 45 40 35 30 25 20 15 10 5 0 Laptop Desktop PC

Interpretation :

Out of sample size of 50 respondents, 62% use laptop and 38% uses desktop.

A.S.P College of Commerce, MBA Programme

29

2.

Mode of internet connectivity preferred by customer

Modes of Connectivity Wireless Dongle Wire Line Cyber net Mobile internet

Respondents 05 05 01 39

50 45 40 35 30 25 20 15 10 5 0 Wireless Dongle Wireline Cyber Centre Mobile Internet

Interpretation :

Out of sample size of 50 respondents, 10% of customers prefer to use Wireless dongle for their internet browsing, 10% Wire line, 2% prefer cyber centre and 78% prefer mobile internet

A.S.P College of Commerce, MBA Programme

30

3.

Per day usage on internet by a customer

Usage 0-1 hr 1-2 hr > 3 hr

Respondents 12 12 26

50 45 40 35 30 25 20 15 10 5 0 0-1 hr 1 to 2 hr >3 hr

Interpretation :

Out of sample size of 50 respondents, 24% each use internet approximately 0-2 hrs per day and 52% use more than three hours a day.

A.S.P College of Commerce, MBA Programme

31

4.

Amount spent by a customer per day on usage of internet ?

Amount Spent 10 20 > 30

Respondents 19 12 19

50 45 40 35 30 25 20 15 10 5 0 10 20 > 30

Interpretation :

Out of sample size of 50 respondents, 38% spend Rs 10 on net usage, 24% spend Rs 20 and 38% spend more than Rs 30.

A.S.P College of Commerce, MBA Programme

32

5.

Current monthly usage of internet by a customer ?

Usage rate 100 mb to 500 mb 501 mb to 1 GB > 1 GB

Respondents 16 12 22

50 45 40 35 30 25 20 15 10 5 0 100 mb to 500mb 501 mb to 1 GB > 1 GB

Interpretation :

Out of sample size of 50 respondents, 32% of respondents use 100 mb to 500 mb per month, 24% use 501 mb to 1 GB and 44% use more than > 1 GB.

A.S.P College of Commerce, MBA Programme

33

6.

Preferred Band Width for Internet Connection ?

Band width 56 Kbps 114 Kbps 256 Kbps 3 Mbps

Respondents 05 13 13 19

50 45 40 35 30 25 20 15 10 5 0 56 Kbps 114 Kbps 256 Kbps 3 Mbps

Interpretation :

Out of sample size of 50 respondents, 10% of respondents prefer 56 Kbps band width, 26% prefer 114 Kbps, 26% than > 1 GB prefer 256 Kbps and 38% prefer 3 Mbps.

A.S.P College of Commerce, MBA Programme

34

7.

Usage of 3G in mobile ?

Particulars Yes No

Respondents 24 26

50 45 40 35 30 25 20 15 10 5 0 Yes No

Interpretation :

Out of sample size of 50 respondents, 48% of respondents use 3G services in mobile and 52% not use the 3G services in mobile.

A.S.P College of Commerce, MBA Programme

35

8.

Name of the service provider for your 3G services ?

Brands Reliance BSNL Airtel DoCoMo Idea

Respondents 02 08 10 18 11

50 45 40 35 30 25 20 15 10 5 0 Reliance BSNL Airtel DoCoMo Idea

Interpretation :

Out of sample size of 50 respondents, 4% of respondents prefer Reliance for 3G services, 16% BSNL, 20% Airtel, 36% DoCoMo and 22% Idea.

A.S.P College of Commerce, MBA Programme

36

9.

According to you, which is the most important aspect of 3G Internet connection ?

Services Best service money no matter Average service with average price Average service and low price Low entry cost but future cost variable

Respondents 15 11 20 04

50 45 40 35 30 25 20 15 10 5 0 Best service money no matter Average service with average price Average service and low price Low entry cost but future cost variable

Interpretation :

Out of sample size of 50 respondents, 30% of respondents need best service provider in 3G, 22% need average service for average cost, 40% need low cost, 8% low entry cost

A.S.P College of Commerce, MBA Programme

37

10.

How you came to know about 3G ?

Particulars Friends Newspaper Television Advertisement

Respondents 10 04 11 25

50 45 40 35 30 25 20 15 10 5 0 Friends Newspaper TV Ad's

Interpretation:

Out of sample size of 50 respondents, 20% of respondents are aware of 3G through friends, 8% through newspapers, 22% through TV and 50% through Ads.

A.S.P College of Commerce, MBA Programme

38

FINDINGS
1. From the study it is found that the customers are not happy with the tariffs of the 3G services. 2. There is a cutthroat competition in the market of Bijapur as this is because all the companies have launched the services recently. 3. 4. The market share in the 3G service of Idea is average compared to other competitors The customers prefer the initial cost of the service is too high and they need low entry cost. 5. 6. 7. There are average users of 3G service in the mobiles. From the study it is found that almost all the people are aware of 3G services The customers are ready to spend on 3G services but only at average cost comparing to the broadband. 8. It is one of the growing market in the telecommunications sector and also the internet usage is on higher side by the customer comparing earlier days.

A.S.P College of Commerce, MBA Programme

39

RECOMMENDATIONS
1. The market share of Idea 3G in Bijapur city is on average mode compared to competition, it must use some innovative market strategies to beat the competition. 2. It should increase the promotional activities, like giving sponsorship, participating in trade shows, club functions. 3. They must come up with the student plans as there is lot of potential market in students category. 4. The pricing strategy should be varied to beat the competition. 5. More awareness about 3G should be created in the middle class professionals. 6. Different net packs should be introduced in the Dongle schemes

A.S.P College of Commerce, MBA Programme

40

CONCLUSION
In todays scenario, the increasing use and understanding of technology is augmenting the growth of the communications market in India. The communication market in India is fairly influencing the growth, especially of the mobile handset and service providers. Following are some interesting statistics supporting the same: As of May, 2011, the mobile subscription base stands at more than 811 million in India which is the worlds second highest after China. The most interesting part about these millions of subscribers is that they are fast changing their preferences to a better mode of communication. No doubt about the fact that the 2G market in India is one of the fastest-growing mobile services markets in the world but the change to 3G is happening. An example of how big 3G is with respect to Indian markets is, GOI expecting INR 35,000 earned INR 67,719 crores against in the 3G spectrum auctions. As all the companies have launched the 3G services in the city, there is a huge competition ahead. The companies must take care of the customer satisfaction and move ahead with the new schemes and offers which is benefited from the company. The market potential of the 3G in the city is on the higher side and its growing. The companies must think from the view of the customer shoes and design the tariffs. As per the survey people are ready to spend money on the 3G but they are not happy with the entry cost of the service as it is very high. Hence in this cutthroat condition the companies must use the innovative strategies to beat the competition and also satisfying the customer needs. The recommendations are made as per the survey conducted on the customer satisfaction towards the idea 3G services in the city. Hence the company must come up with the new strategies to sustain in the 3G market and also satisfying the customer with its strategies and tariffs.

A.S.P College of Commerce, MBA Programme

41

BIBLIOGRAPHY

Websites :

1. 2.

http://www.ideacellular.com/wps/portal www.idea3g.co.in

Search Engine:

www.google.com Books :

Marketing Management :

By Ramaswamy.

A.S.P College of Commerce, MBA Programme

42