P PR RO OJ JE EC CT TR RE EP PO OR RT T

ON
3G REVENUE VALIDATION AND COMPUTATION PROCESS

For

AN IDEA CAN CHANGE YOUR LIFE ! UNDER THE GUIDANCE OF

Companys Guide Name MR. MOHD. SAAD (SENIOR MANAGER ACCOUNTS)

BY SHIPRA SHARMA HINDUSTAN INSTITUTE OF MANAGEMENT & COMPUTER STUDIES (2010-2012)

DECLARATION BY THE CANDIDATE

I declare that project titled 3G revenue validation and computation process in IDEA Cellular Limited is my own work conducted under the guidance of Mr. Shishir kumar Singh of IDEA Cellular Limited, Lucknow, UP East and I have put in 4 weeks of attendance with the supervisor at office.

I further declare that to the best of my knowledge the field project is my original work.

SHIPRA SHARMA (Candidate)

Mohd. Saad (Supervisor)

ACKNOWLEDGEMENT

I convey my heart felt affection to all those people who helped and supported me during the course for completion of my project. First and foremost, I am honestly grateful to Mr. Shishir Kumar Singh, Assit. Manager in accounts who made the complicated aspects of investigations simple though regular counseling and help. His valuable suggestions throughout the work and helped me with pertinent literature. However, it will not be fair not to acknowledge the efforts, support and cooperation of colleagues. This project would not have been possible without the active support of those persons who have contributed in many ways at various stages involved in bringing this dissertation in this form so, I would like to offer my sincere gratitude to all.

PREFACE

This project report is part of the summer training in Idea Enterprise Services. The training was a crucial element as it was oriented towards exposing us to the major aspects of the organisation namely, the working and the market penetration of the organisation. Summer training is an integral part of our course curriculum. These days institutes have started giving more stress on the management training, as it is the interface of a management student with the culture of the corporate world and it also gives the first hand experience to use the knowledge acquired by them through their faculty in the class in the corporate world. Our institute has also been looking in the same direction and is determined to produce quality students who have a balanced knowledge of both theoretical aspects and the practical knowledge as well. In the same context we had to undergo a summer training of 4 weeks in a company.

TABLE OF CONTENT

1. Executive Summary 2. Objective of the study 3. Telecom Industry 4. Evolution in Industry-Important milestones 5. Major Players 6. Telecom Policy Environment 7. Market Trends 8. Mergers 9. Telecom Industry in India 10. Telecommunication services 11. The mobile landscape in India 12. Present Scenario 13. Market Shares of various players 14. Telecommunication Services 15. Structure of Indian telecom industry 16. Aditya Birla group 17. Idea`s company details 18. Idea`s financial department 19. Awards 20. Financial report of Idea

21. 3G overview 22. Analysis 23. Interpretation 24. Findings 25. Conclusion 26. Bibliography

EXECUTIVE SUMMARY
India is the fastest growing major mobile market in the world. Building on leading position in the market, IDEA CELLULAR. aims to capitalize on that growth potential to significantly increase the subscriber base and market share. Idea Cellular. is one of the leading telecom service providers in India. With around 66689943 customers which consisting of 64370434 GSM mobile customers, company is looking for turning bigger stones in Indian telecom industry. The objective of the research is to validate the data of 3G . There are two reports one which come from the local IT department and one which come from the central IT department in which there is some difference which have to find out.

OBJECTIVE OF THE STUDY

There is a certain objective for a study. Objective may depend upon the study nature.

The objective of study can be summarized as below:-

To report and book correct 3G Data. Booking in Oracle. To validate the Data. Reconcile the data.

THE TELECOM INDUSTRY

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 Indias 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 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 totals telephone subscriber base, as compared to only 40% in 2003. Wireless subscrib-

er 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.

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EVOLUTION IN INDUSTRY-IMPORTANT MILESTONES: Year

1851 First operational land lines were laid by the government near Calcutta (seat of British power) s1881 Telephone service introduced in India 1883 Merger with the postal system 1923 Formation of Indian Radio Telegraph Company (IRT) 1932 Merger of ETC and 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 Communications. 1985 Department of Telecommunications (DOT) established, an exclusive provider of domestic and long-distance service that would be its own regulator (separate from the postal system).

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1986 Conversion of DOT into two wholly government-owned companies: the Videsh Sanchar Nigam Limited (VSNL) for international telecommunications and Mahanagar Telephone Nigam Limited (MTNL) for service in metropolitan areas. 1997 Telecom Regulatory Authority of India created. 1999 Cellular Services are launched in India. New National Telecom Policy is adopted. 2000 DoT becomes a corporation, BSNL

Major Players
There are three types of players in telecom services: State owned companies (BSNL and MTNL) Private Indian owned companies (Reliance Infocomm, Tata Teleservices,) Foreign invested companies (Hutchison-Essar, Bharti Tele-Ventures, Escotel, Idea Cellular, BPL Mobile, Spice Communications)

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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 Indias 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 FiveYear 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.

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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 tele communications services. Its subsidiaries operate telecom services across India. Bhartis 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 local

14

connections. 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, Bhartis footprint extends across 15 circles.

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 Indias 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 Indias leading and one of Asias largest telecom operating companies. The company has also been in the forefront of 5 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.

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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.

16

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 countrys 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.

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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 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 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.

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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 Inmarsat 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 Panetone 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.

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HUTCH Hutchs 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 licences. 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 licence 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.

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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 Birla Group . Idea Cellular Limited was incorporated in 1995. The company is among the top four mobile telephony players in India with an 11 per cent all-India subscribers market share. More importantly, it ranks third in terms of wireless revenue market share at 12.7 per cent. Idea ranks second with 20.8 per cent revenue market share in nine service areas where it holds 900MHz spectrum and which derive 48 per cent of industry's gross revenues (based on gross revenues for UAS and mobile licenses only, for December 2009 quarter, as released by TRAI). The market positioning of Idea reflects the strength of its brand considering the fact that Idea added 14 out of its total 22 service areas in the

21

past four years. Today it is a pan-India player with commercial operations in all 22 service areas. Its subscriber base has grown multifold from 7.37 million in March 2006 to 63.82 million in March 2010.Idea holds 16 per cent stake in Indus Towers, a joint venture with other telecom majors Bharti Airtel and Vodafone. Indus Towers is the world's largest tower company with over one lakh towers. In 2007, Idea was listed on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). Idea enjoys a market leadership position in many of its operational areas. It offers GPRS on all its operating networks for all categories of subscribers, and was the first company in India to commercially launch the next generation EDGE technology in Delhi in 2003. As a pioneer in technology deployment, it has been at the forefront through the adoption of bio fuels to power its base stations, and by employing satellite connectivity to reach inaccessible rural areas in Madhya Pradesh.

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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 Indias 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 proclaimed his intention of leading India into the 21st century, and carved the Department of Telecommunications (DOT) out of

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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 governments 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
24

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 Indias telecom sector did not really become a reality until 1999. At that time the governments 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 Indias 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 DOTs attempt to limit competition. It was in response to such concerns that the 9 government in 1997 set up the Telecom Regulatory Authority of India (TRAI), the nations 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 be25

leaguered on all fronts. It had to contend with political interference, the incumbents many challenges to its authority, and accusations of ineptitude by private players. Throughout the late 1990s, TRAIs 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 Indias internal long-distance market in 2000, and the subsequent drop in long-distance rates as part of TRAIs tariff rebalancing exercise;

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 The termination of VSNLs 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 interoperated negotiationsbased 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.

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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 incumbents (BSNL) network, and the governments 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 im pressive results, the growth of Internet in the country has recently stalled, with only 8 million users. Broadband penetration, too, remains tiny.

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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.

MERGERS
According to media reports, South African telecom group MTN has restarted its merger-related talks with India's largest mobile operator, Bharti Airtel, as its proposed deal with Reliance Communications (RCom) was impeded by the ROFR (rights of first refusal) made by Reliance Industries. Although the development has not been officially confirmed, South African media reports

29

suggest that these rumors do hold merit. A South African newspaper, The Times, said that MTN could be interested in pursuing.

TELECOM INDUSTRY IN INDIA

The telecom industry is one of the fastest growing industries in India. India has nearly 200 million telephone lines making it the third largest network in the world after China and USA. With a growth rate of 45%, Indian telecom industry has the highest growth rate in the world. The first wind of reforms in telecommunications sector began to flow in 1980s when the private sector was allowed in telecommunications equipment manufacturing. In 1985, Department of Telecommunications (DOT) was established. It was an exclusive provider of domestic and long-distance service that would be its own regulator (separate from the postal system). In 1986, two wholly government-owned companies were created: the Videsh Sanchar Nigam Limited (VSNL) for international telecommunications and Mahanagar Telephone Nigam Limited (MTNL) for service in metropolitan areas. In 1990s, telecommunications sector benefited from the general opening up of the economy. Also, examples of telecom revolution in many other countries, which resulted in better quality of service and lower tariffs, led Indian
30

policy makers to initiate a change process finally resulting in opening up of telecom services sector for the private sector. National Telecom Policy (NTP) 1994 was the first attempt to give a comprehensive roadmap for the

Indian telecommunications sector. In 1997, Telecom Regulatory Authority of India (TRAI) was created. TRAI was formed to act as a regulator to facilitate the growth of the telecom sector. New National Telecom Policy was adopted in 1999 and cellular services were also launched in the same year. Telecommunication sector in India can be divided into two segments: Fixed Service Provider (FSPs), and Cellular Services. Fixed line services consist of basic services, national or domestic long distance and international long distance services. The state operators (BSNL and MTNL), account for almost 90 per cent of revenues from basic services. Private sector services are presently available in selective urban areas, and collectively account for less than 5 per cent of subscriptions. However, private services focus on the business/corporate sector, and offer reliable, high- end services, such as leased lines, ISDN, closed user group and videoconferencing. Cellular services can be further divided into two categories: Global System for Mobile

31

Communications (GSM) and Code Division Multiple Access (CDMA). The GSM sector is dominated by Airtel, Vodfone-Hutch, and Idea Cellular, while the CDMA sector is dominated by Reliance and Tata Indicom. Opening up of international and domestic long distance telephony services are the major growth drivers for cellular industry. Cellular operators get substantial revenue from these services, and compensate them for reduction in tariffs on airtime, which along with rental was the main source of revenue. The reduction in tariffs for airtime, national long distance, international long distance, and handset prices has driven demand.Indian telecom sector has undergone a major process of transformation through significant policy reforms. The reforms began in 1980s with telecom equipment manufacturing being opened for private sector and were later followed by National Telecom Policy (NTP) in 1994 and NTP'1999. Historically, the telecom network in India was owned and managed by the Government considering it to be a natural monopoly and strategic service, best under state's control. However, in 1990's, examples of telecom revolution in many other countries, which
32

resulted in better quality of service and lower tariffs, led Indian policy makers to initiate a change process finally resulting in opening up of telecom services sector for the private sector. Policy reforms can be broadly classified in three distinct phases. " The Decade of 1980's saw private sector being allowed in telecommunications equipment manufacturing. Mahanagar Telephone Nigam Limited (MTNL) and Videsh Sanchar Nigam Limited (VSNL) were formed and Telecom Commission was set up to give focus to telecommunications policy formation. In 1990s, telecommunications sector also benefited from the general opening up of the economy. NTP 1994 was the first attempt to give a comprehensive roadmap for the Indian telecommunications sector.

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TELECOMMUNICATION SERVICES
Basic service Cellular service Internet Service Provider (ISP)

34

THE MOBILE LANDSCAPE IN INDIA

The Indian telecommunications market has been segregated into 23 areas referred to as Circles. There are four metropolitan Circles (Mumbai, Delhi, Kolkata and Chennai) and 19 regional Circles which are classified into three categories A, B and C. There are five category A Circles, eight category B Circles and six category C Circles. Although the metropolitan Circles currently account for only 5% of the total population of India, they account for approximately 27.04 million, 21.3%, of the total number of subscribers in India, as at September 30, 2006. The category A, category B and category C Circles, by comparison, currently account for approximately 31%, 44% and 19% of the total population of India and account for approximately 35.5%, 34.3% and 8.7% of the total number of subscribers, respectively. A detailed breakdown of the total number of subscribers, as at September 30, 2006, in each of these Circles is given below. The chart below excludes CDMA subscribers of BSNL and MTNL:

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(Population and subscribers in 000s

36

PRESENT SCENARIO

Telephony Subscribers (Wireless and Landline): 300.51 million (January 2008)

Cellphones: 267.23 million (April 2008)

Land Lines: 39.42 million (March 2008)

Yearly Cellphone Addition: 83 million (2007)

Monthly Cellphone Addition: 10.16 million (March 2008)

Teledensity: 26.22% (March 2008)

Projected teledensity: 500 million, 40% of population by 2010.

Broadband connection: 3.47 million (Feb 2008)

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MARKET SHARES OF VARIOUS PLAYERS (As on may 2008)

38

FUTURE

The Indian telecom industry is expected to reach a size of Rs 344,921 crore by 2012 at a growth rate of over 26 per cent, and generate employment opportunities for about 10 million people during the same period, according to a report. The telecom industry had a market size of Rs 105,287 crore in 2006.

The sector would create direct employment for 2.8 million people and for 7 million indirectly, according to a Frost and Sullivan report.

Despite record growth over the last 12 months, only 21.85% of the countrys 1.1 Billion population owns a telephone, which means the growth in new subscriber additions will continue and even accelerate.

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The Ministry of Communications and Information Technology (MCIT) is has very aggressive plans to increase the pace of growth, targeting 500 million telephone subscribers by 2010 and 650 million by 2012 which is currently 250 million. Most of the expansion in subscribers is set to occur in rural India. Indias 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.

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VISION
"To be a premium global conglomerate

with a clear focus on each business.

MISSION
To deliver superior value employees to our customers, and

shareholders, society at large.

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!DEA TELECOMMUNICATIONS

42

VALUES

43

TELECOMMUNICATION SERVICES Telecommunication services include Basic service, Cellular service, Internet Service Provider (ISP) and Very Small Aperture Terminal (VSAT) services. Government of India (GOI) plans to introduce a unified license for all telecommunication services in India, and has already allowed full mobility to wireless in local loop (WLL) operators as a first step. Telecom services are growing at an approximate rate of around 5 percent per year in terms of revenue and mere 10 % in terms of subscriber base in last five years. Partly the result is due to negative growth in NLD market (-14% Rs 51,410 million from Rs 59,880 million) and ILD market (-13% Rs 43,460 million from Rs 50,010 million) in 2003-04. Amongst telecom services, cellular services are the fastest growing, with CAGR of 40 percent over the past four years. Telecommunications Regulatory Authority of India (TRAI) expects that the total number of cellular connections would bypass the total number of fixed line connections by late 2004 and early 2005. (As on March 2004 subscriber base of cellular operators is 33 million and basic operator is 42.84 million).During the past three years, in terms of subscriber base telecommunica-

44

tions services have been growing at a CAGR of nearly 22%, owing largely to the rapid increase in cellular service subscribers

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STRUCTURE OF INDIAN TELECOM INDUSTRY

46

ADITYA BIRLA GROUP

The Aditya Birla Group, India's first multinational corporation, traces its originss back to the tiny village of Pilani in the Rajasthan desert, where Seth Shiv Narayan Birla started cotton trading operations in 1857. In 1919, Ghanshyamdas Birla, grandson of Shiv Narayan Birla, started the first Birla jute mill, marking his entry into the manufacturing sector. In 1965, Aditya Birla, grandson of the legendary Ghanshyamdas Birla, starts the Eastern Spinning Mills & Industries. In 1990 Mr. Kumar Mangalam Birla gets actively involved in the Group's operations and in 1996 all group companies are consolidated under the umbrella of the Aditya Birla Group, led by Mr. Kumar Mangalam Birla.

Today the Aditya Birla Group is a US $28 billion corporation with a market cap of US $31.5 billion and in the league of Fortune 500; the Aditya Birla Group is anchored by an extraordinary force of 100,000 employees, belonging to 25 different nationalities. In India, the Group has been adjudged "The Best Employer in India and among the top 20 in Asia" by the Hewitt-Economic Times and Wall Street Journal Study 2007. Over 50 per cent of its revenues flow from its overseas operations. The Aditya Birla Group operates in 20 countries which include India, Thailand, Laos, Indonesia, Philippines, Egypt, China, Canada, Aus-

47

tralia, USA, UK, Germany, Hungary, Brazil, Italy, France, Luxembourg, Switzerland, Malaysia and Korea.

GLOBALLY THE ADITYA BIRLA GROUP IS:-

metal

powerhouse,

among

the world's

most cost-

efficient aluminium and copper producers. Hindalco-Novelis from its fold is a Fortune 500 company. It is the largest aluminium rolling company. It is one of the three biggest producers of primary aluminium in Asia, with the largest single location copper smelter Number1 in viscose staple fibre The fourth largest producer of insulators The fourth largest producer of carbon black The 11th largest cement producer globally Among the world's top 15 BPO companies and among India's top three Among the best energy efficient fertilizer plants

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IN INDIA THE ADITYA BIRLA GROUP IS

A premier branded garments player. The second largest player in viscose filament yarn. The second largest in the chlor-alkali sector. Among the top five mobile telephony companies. A leading player in life insurance and asset management. Among the top three supermarket chains in the retail business.

Beyond business the Aditya Birla Group is working in 3,700 villages reaching out to seven million people annually through the Aditya Birla Centre for Community Initiatives and Rural Development, spearheaded by Mrs. Rajashree Birla. Its focus is on health care, education, sustainable livelihood, infrastructure and espousing social causes. It runs 41 schools and 18 hospitals transcending the conventional barriers of business to send out a message that "We care". The Aditya Birla Group is rock solid in its fundamentals, nurtures a culture where success does not come in the way of the need to keep learning afresh, to keep experimenting.

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IDEA CELLULAR IN UPE Idea was launched in the UP east circle in the year 2006. UP east has traditionally been a low ARPU, cost sensitive market. The first mover in this market was Vodafone which started services by the name of Essar as early as 97-98. In the last 10 years, Vodafone has consolidated its position by covering over 90% of the population under its network coverage, a retailer base of over 90000 and subscriber base of well over 6 million. Challenging Vodafone or Airtel is not what Idea immediately looked at. Idea, when launched, gave the impression of offering something new, unique and at prices which were lower than the competition. This gave rise to the perception of low cost which is associated with Idea even till date. Today Idea is the 5th largest player in the UPE market. Not much has changed since the launch. It was the 5th largest at that time too. Vodafone, Ten years. However, the positive side is that Idea is now a strong force to reckon with. The rate of growth is very good and network expansion is happening fast. The company has huge expansion plans. Today Idea has a subscriber base of just over 2 million customers, a retailer base of over 60000 and well over 60% of the population of UPE is covered under the network.

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The company operates by covering UPE under 8 different zones namely Lucknow, Kanpur, Sitapur, Varanasi, Allahabad, Azamgarh, Gorakhpur and Jhansi. Each zone is further divided into various districts. All the zones are collectively controlled by the Circle office situated at Lucknow under the leadership of the CEO Mr. N F Aibara. Though all the major functions like Marketing, Finance, Quality, Network, HR etc. are combined for all 8 zones, the Sales division because of its huge size is divided into two R1 covering the first 4 zones headed by Mr. Ashok Gupta and R2 covering the remaining 4 zones headed by Mr. Sanjay Sofat. These people get support from the sales head for Postpaid (Mr. Avinash Singh), for PCO (Mr. Avinash Bhagat) and for Prepaid (Mr. I B Asthana for R1 and Mr. Rajneesh for R2.) All the zones are headed by Zonal Business Managers who report to the Circle office.

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HOLDING PATTERN IN IDEA CELLULAR

Initially the Birlas, the Tatas and AT&T Wireless each held one-third equity in the company. But following AT&T Wireless' merger with Cingular Wireless in 2004, Cingular decided to sell its 32.9% stake in Idea. This stake was bought by both the Tatas and Birlas at 16.45% each.

Tata's foray into the cellular market with its own subsidiary, Tata Indicom, a CDMA-based mobile provider, cropped differences between the Tatas and the Birlas. This dual holding by the Tatas also became a major reason for the delay in Idea being granted a license to operate in Mumbai. This was because as per Department of Telecom (DOT) license norms, one promoter could not have more than 10% stake in two companies operating in the same circle and Tata Indicom was already operating in Mumbai when Idea filed for its licence. The Birlas thus approached the DOT and sought its intervention, and the Tatas replied by saying that they would exit Idea but only for a good price. On

April 10, 2006, the Aditya Birla Group announced its acquisition of the 48.18% stake held by the Tatas at Rs. 40.51 a share amounting to Rs. 44.06 billion.

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While 15% of the 48.14% stake was acquired by Aditya Birla Nuvo, a company in-charge of the Birlas' new business initiatives, the remaining stake was acquired by Birla TMT holdings Private Ltd., an AV Birla family owned company. Currently, Birla Group holds 49.1% of the total shares of the company. 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 Cellular is a leading GSM mobile service operator with pan India licenses. With a customer base of over 40 million in 15 service areas, operations are soon expected to start in Orissa and Tamil Nadu-the first steps in providing pan India services covering over 90% of India's telephony potential. A frontrunner in introducing revolutionary tariff plans, IDEA Cellular has the distinction of offering the most customer friendly and competitive Pre Paid offerings, for the first time in India in an increasingly segmented market. Customer Service and Innovation are the drivers of this Cellular Brand. A brand known for many firsts, Idea was the first to launch GPRS and EDGE in the country. Idea has received international recognition for its path-breaking innovations when it won the GSM Association Award for "Best Billing and Customer Care Solution" for 2 consecutive years. IDEA Cellular is part of the Aditya Birla Group, India's first truly multinational corporation. The group operates in 25 countries, and is anchored by over 1,25,000 employees belonging to

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25 nationalities. The Group has been adjudged 'The Best Employer in India and among the Top 20 in Asia' by the Hewitt-Economic Times and Wall Street Journal Study 2007.

OUR SERVICE AREAS

The Indian telecommunications market for mobile services is divided into 22 "Service Areas" classified into "Metro", Category "A", Category "B" and Category "C" service areas by the Government of India. These classifications are based principally on a Service Area's revenue generating potential. Our operational 13 Service Areas are broken up into Established and New Service Areas.

ESTABLISH SERVICE AREAS

The established service areas are Delhi, Andhra Pradesh, Gujarat and Maharashtra, Haryana, Kerala, Madhya Pradesh and Uttar Pradesh (West).Licenses for the Maharashtra and Gujarat Service Areas were awarded in December 1995, with network rollout and commercial launch achieved in 1997. In January 2001 the mobile operations in Andhra Pradesh Service Area were integrated with IDEA through a merger with Tata Cellular Limited. In June 2001, the mobile
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operations in Madhya Pradesh Service Area were fully integrated with IDEA through an acquisition of RPG Cellcom Limited. In October 2001, the license for Delhi Service Area was acquired during the fourth mobile license auction, with network rollout and commercial launch in November 2002. In January 2004, Escotel Mobile Communications Private Limited ("Escotel"), was acquired with its Original licenses in the Service Areas of Haryana, Uttar Pradesh (West) and Kerala. All these Service Areas were re-branded and integrated with IDEA in June 2004.

NEW SERVICE AREAS

The New Service Areas are Uttar Pradesh (East), Rajasthan, Himachal Pradesh, Bihar, Mumbai, Karnataka and Punjab Licenses for Uttar Pradesh (East), Rajasthan and Himachal Pradesh were acquired through the acquisition of Escotel (Escorts Telecommunications Limited).

Services in Karnataka and Punjab were launched through the acquisition of Spice Communications.

Idea launched its services in Mumbai and Bihar in 2008. The Mumbai launch was the largest Metro City launch in India.

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COVERAGE Idea Cellular Ltd has seen phenomenal growth since its inception. Idea Cellulars footprint idea is to first achieve critical mass, then drill deep instead of spreading thin. In keeping with this, the company has been providing excellent service to its subscribers in various states. It controls a portfolio of Indias most attractive and contiguous telecom geographies, including the circles of Andhra Pradesh & Delhi (inclusive of NCR), Gujarat, Haryana, Himachal Pradesh, Kerala, Madhya Pradesh & Chattisgarh, Maharashtra & Goa (excluding Mumbai), Rajasthan, Uttar Pradesh (W) and Uttar Pradesh (E). With a footprint dominating the map of India, Idea Cellular accesses over 60% of Indias total telephony potential. The company is now poised to launch its services in new circles namely Mumbai and Bihar.

Idea Cellular Ltd, however, does not believe only in increasing geographic footprint it also drills deep and successfully attempts to provide excellent network coverage in all its circles of operations.

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CIRCLES As Indias leading GSM Mobile Services operator, IDEA Cellular has licenses to operate in all 22 Service Areas. Presently, operations exist in 11 Service Areas covering Delhi, Maharashtra, Goa, Gujarat, Andhra Pradesh, Madhya Pradesh, Chhattisgarh, Uttaranchal, Haryana, UP-West, Himachal Pradesh, UP-East, Rajasthan and Kerala. With a customer base of over 26 million, IDEA Cellulars footprint currently covers approximately 60% of Indias telecom population.

CIRCLE HEADS

Mr. Iyer Subbaraman S., Chief Operating Officer, Andhra Pradesh

Mr. Rajendra Chourasia, Chief Operating Officer, Madhya Pradesh & Chattisgarh

Mr. Atul Chaturvedi, Chief Operating Officer, Delhi & Haryana

Mr. T. G. B. Ramakrishna, Chief Operating Officer, Kerala

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 Mr. Sashi Shankar, Chief Operating Officer, Mumbai

Mr. P.Lakshminarayana, Chief Operating Officer, Maharashtra & Goa

Mr. Virad Kaul, Chief Operating Officer, Uttar Pradesh (West)

Mr. Naozer Firoze Aibara, Chief Operating Officer, Uttar Pradesh (East)

Mr. Sunil Kataria, Senior Vice President - Operations, Rajasthan

Mr. Arul Bright, Senior Vice President - Operations, Gujarat

Mr. M. D. Prasad, Senior Vice President - Operations, Bihar

Mr. Vijay Grover, Chief Operating Officer, East

Mr. M. Srinivas, Senior Vice President - Operations, Tamil Nadu & Chennai

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 Mr. Rakesh Kumar Singh -Chief Operating Officer, Karnataka

Mr. Anish Roy, Chief Operating Officer, Punjab, J&K and Himachal Pradesh

Mr. N.N.Dutta, Vice President, Orissa

KEY PEOPLE

Board of Directors Mr. Kumar Mangalam Birla (Chairman) Smt. Rajashree Birla Mr. Saurabh Misra Mr. Sanjeev Aga (Managing Director) Mr. Arun Thiagarajan Ms. Tarjani Vakil Mr. Mohan Gyani

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 Mr. Gian Prakash Gupta Mr. R.C. Bhargava Mr. P. Murari

Mr. Biswajit A. Subramanian Dr. Hansa Wijayasuriya

MANAGEMENT TEAM CORPORATE LEADERSHIP TEAM

Mr. Sanjeev Aga, Managing Director Mr. Akshaya Moondra, Chief Financial Officer Mr. Anil K. Tandan, Chief Technology Officer Mr. Prakash K. Paranjape, Chief Information Officer

Mr. Pradeep Shrivastava, Chief Marketing Officer

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 Mr. Navanit Narayan, Chief Service Delivery Officer Mr. Vinay K. Razdan, Chief Human Resource Officer

Mr. Rajat K. Mukarji, Chief Corporate Affairs Officer Mr. Rajesh K. Srivastava, Chief Materials & Procurement Officer Mr. Ambrish Jain, Director Operations Mr. Himanshu Kapania, Director - Operations

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IDEA PARTNERS

IDEA welcomes all business and individuals interested in partnering with us to enhance and strengthen the IDEA products & services portfolio.

To explore such potential partnerships, kindly get in touch with us by submitting the partners form.

Some of our technology and content partners.

ONMOBILE ASIA PACIFIC LTD. CELLEBERUM INDIA LTD. SIDDHIVINAYAK ASTRO SERVICES LTD. KODIAK LTD. MAUJ. NET4NUTS INDIA LTD. YAHOO. REDIFF.COM INDIATIMES. SIFY NDTV.
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 MOBILE2WIN. ROAMWARE.INC STARHOME. BHARTI TELESOFT. LOWE INDIA PVT LTD. MINDSHARE. IMPRIMIS PR NOKIA-SIEMENS ERRICSON ATOS ORIGIN

HISTORY

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The chronology of key events of the Company from incorporation is set out below -: Calendar year Events 2011 IDEA launches 3G services in his 13 circle 2010 IDEA launches mobile number portability service 2009

IDEA launches services in Tamil Nadu. IDEA expanded services into Orissa. 2008 Idea acquired 9 licenses for Punjab, Karnataka, Tamil Nadu & Chennai, West Bengal, Orissa, Kolkata, Assam, North East and Jammu & Kashmir Acquired Spice Communications with the operating circles of Punjab and Karnataka.

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 Launched services in Mumbai metro in the largest single metro city launch, ever. Launched services in Bihar 2007 Won an award for the CARE service in the Best Billing or Customer Care Solution at the GSM Association Awards in Barcelona, Spain Initial Public Offering aggregating to Rs.28,187 million and Listing of Equity Shares on the Bombay Stock Exchange Merger of seven subsidiaries with Idea Cellular Limited Reached the twenty million subscriber mark 2006 Became part of the Aditya Birla Group subsequent to the TATA Group transferring its entire shareholding in the Company to the Aditya Birla Group Acquired Escorts Telecommunications Limited (subsequently renamed as Idea Telecommunications Limited) Restructuring of debt Launch of new circles Reached the 10 million subscriber mark Received letter of Intent from the DOT for a new UAS License for the Mumbai Circle. Received Letter of Intent from the DOT for a new UAS License for the Bihar Circle through Aditya Birla Telecom Limited. ABNL, the parent of

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 Aditya Birla Telecom Limited, pursuant to a letter dated November 22, 2006, agree to transfer its entire shareholding in Aditya Birla Telecom Limited to the company for the consideration of Rs. 100 million.

2005 Reached the five million subscriber mark Turned Profit Positive Won an Award for the Bill Flash service at GSM Association Awards in Barcelona, Spain Sponsored the International Indian Film Academy Awards

2004

Completed debt restructuring for the then existing debt facilities and additional funding for the Delhi Circle. Acquired Escotel Mobile Communications Limited (subsequently renamed as IDEA Mobile Communications Limited) Reached the four million subscriber mark First operator in India to commercially launch EDGE services 2005

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2003 Reached the two million subscriber mark.

2002 Changed name to IDEA Cellular Limited and launched IDEA brand name Commenced commercial operations in Delhi Circle Reached the one million subscriber mark 2001 Acquired RPG Cellular Limited and subsequently the license for the Madhya Pradesh (including Chhattisgarh ) circle Changed name to Birla Tata AT&T Limited Obtained license for providing GSM based services in the Delhi Circle following the fourth operator GSM license bidding process 2000 Merged with TATA Cellular Limited, thereby acquiring original license for the Andhra Pradesh Circle.

1999 Migrated to revenues share license fee regime under New Telecommunications Policy (NTP)

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1997 Commenced operations in the Gujarat and Maharashtra Circles.

1996 Changed name to Birla AT & T Communication Limited following joint venture between Grasim Industries and AT & T Corporation

1995 Incorporated as Birla Communication Limited Obtained licenses for providing GSM based services in the Gujarat and Maharashtra Circles following the original GSM license bidding process.

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IDEA FINANCE DEPARTMENT

The idea Finance Department consists of the following Sub departments Revenue Accounting Payables Legal MIS Revenue assurance

REVENUE ACCOUNTING
This section of finance department deals with all the sources of revenue and maintains their records which help in assessing the performance of the company and also in plans and policies of the revenue are company. The various sources are: Postpaid Revenue Stream Postpaid Revenue Stream Roaming Revenue Stream Value Added Services (VAS) Revenue Stream Interconnected Usage Charges (IUC) Revenue Stream

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PAYABLES
Every company earns through providing products or services to the consumer and for this and also for maintaining all the services provided to the consumers, it has to incur expenditures. The company owns fixed assets, current assets, maintains its working capital, make payments for expenditures like payment of Taxes, salaries to employees, maintenance of office and various facilities etc. The accounts for all these expenditures are maintained by the payables section under the finance department. The expenses are divided into major parts: OPEX-Operational expenditure CAPEX-Capital Expenditure

LEGAL
Apart from the business to consumer relation, a company has to maintain certain other relations as well, such as with business partners, stake holders, government, distributors, stockiest, competitors, other related business and the society. The company has to make agreements, handle cases which may be filled by the consumers or any other

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party over the company or by the company over any other party and many other such activities which require a lot of legal help.

MIS
Management Information system deals with preparing reports,

maintaining records etc. One of the main functions of the MIS is budgeting, planning and projection. The section analyses the financial and other statements and prepares budget for the current as well as the coming financial period on its basis.

REVENUE ASSURANCE
Revenue Assurance deals with assessing risk and loss only in areas where management has directed it to. It is the job of Revenue Assurance to report the risk of loss. The appetite for risk and the level of acceptable risk is a parameter set explicitly by the management team. If so directed, the Revenue Assurance team can be commissioned with responsibility to investigate, develop and promote recommendations for

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the reduction of a risk exposure from its current level, to a level set by management.

AWARDS

Idea Cellular Recognized As The Most Customer Responsive Company In The Telecom Sector By Avaya Global Connect Tagged with: IDEA Cellular

IDEA Cellular has been recognized as the Most Customer Responsive Comp any in the Telecom sector, at the prestigious Avaya Global Connect Customer Responsiveness Awards 2010. Ideas commitment to offer superior customer service and its constant endeavor to enhance customer satisfaction received due to recognition by the illustrious jury comprising of senior members from Ernst & Young, Nielsen and Avaya Global Connect. The Avaya Global Customer Responsiveness Award was conferred upon IDEA Cellular in recognition of its various new and innovative customer service and delivery initiatives in the telephony services space. Idea was chosen as the winner of the prestigious award

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after an extensive quality audit of the organizations systems and processes, leaving behind many other strong contenders in the telecom category. IDEA Cellular was amongst the 11 distinguished winners, who were selected from a list of 124 nominees, in various categories for the Avaya Global Connect Customer Responsiveness Awards, this year. Speaking on the occasion, Mr. Navanit Narayan, Chief Service Delivery Officer, IDEA Cellular Ltd said, This award is a recognition of our commitment to institutionalizing the highest standards of Customer Relationship Management processes. It has been our constant endeavor to align all processes and practices to facilitate customer delight. The prestigious Avaya Globa lConnect Customer Responsiveness Award is a testimony of our efforts in quickly and aptly responding to our customer needs and requirements in this dynamic and competitive telecom industry.The prestigious Avaya Global Connect Customer Responsiveness Awards, now in its sixth year, has raised the bar for customer delight, and inspired organizations to lift the user experience to new levels. The award was instituted by Avaya Global Connect, and was introduced for the first time in India in collaboration with The Economic Times. The award recognizes efforts of organizations, who in an environment where the user has become more discerning, demanding and, even fickle have invested time, energy and money into making their Customer Responsiveness initiatives quantifiable and workable.

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IDEA Cellular, an Aditya Birla Group Company, is a leading pan-India integrated GSM operator with 64 million subscribers across the country.

IDEA FILMFARE LOGO

Worldwide Media Pvt Limited, the joint venture between the Times of India Group and BBC Worldwide, today announced the continuation of its long-term sponsorship agreement on the Filmfare Awards with mobile operator Idea Cellular Ltd.

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This will be the second year of association for Idea with the Filmfare Awards, which are given annually for excellence in Indian cinema by Filmfare, the movie magazine produced by Worldwide Media.

The 55th Idea Filmfare Awards are scheduled to be presented on February 27 at the Yashraj Studios in Mumbai. As in previous years, the nominees for the awards in various categories will be chosen through an audience poll. According to the Times Group, the response has been overwhelming this year with audiences voting through postal mail, mobile and online media. Fifty per cent weightage will be given to polling results and equal weightage to a specially-appointed panel of judges. "Its time, once again, for the biggest awards show of the film industry the Idea Film fare Awards. We will raise a toast, as we have for the last 55 years, to the immense talent of our film industry. We have had a successful partnership with Idea Cellular and, along with them, hope to make the Awards show even bigger this year," Mr Tarun Rai, Chief Executive Officer, Worldwide Media Pvt. Ltd. said at a press conference today. Mr Rai said 111 films had qualified this year and awards would be given in 37 categories, with no news categories added this year.

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Mr. Pradeep Shrivastava, Chief Marketing Officer, Idea Cellular said, "Brand Idea always associates with champion ideas to offer unique user experience, and entertainment, to our 58 million subscribers, across India. Our continued associ ation with the prestigious Idea Filmfare Awards is a testimony of the brands promise to offer the best-in-class entertainment, through our reach and connect with the audience, across the length and breadth of the country. This year again, IDEA will bring stars and the best of movies, closer to our customers, through the 55th Idea Filmfare Awards."

Film actor Asin flanked by Tarun Rai, Chief Executive Officer, Worldwide Media Pvt Ltd. and Pradeep Shrivastava, Chief Marketing Officer, IDEA Cellular at the 55th Idea Filmfare Conference.

Actress Asin Thottumkal was also present at the event. She has won three Filmfare awards in three different languages. "My association with Filmfare has been a long one. It was the first film magazine that I knew," she remarked.

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A press release said Idea would offer rich content on the mobile platform around the Idea Filmfare Awards for its 58 million subscribers. It will also in

troduce a range of value-added service (VAS) products and contests, specially designed around Bollywood and cinema. Idea contest winners will get to attend the awards ceremony, sitting alongside Bollywoods celebrities. Select custo mers will also get to meet and Bollywood stars, as part of the brand association with Filmfare. Worldwide Media is a 50:50 joint venture owned by the Times of India group and BBC Worldwide. Apart from Filmfare, it publishes Femina, a magazine for women. More recently, it has launched the UK auto magazine BBC TopGear in India. Idea Cellular is part of the Adiya Birla Group.

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FINANCIAL REPORT OF IDEA

Previous Years

Balance Sheet of Idea Cellular ------------------- in Rs. Cr. ------------------Mar '06 12 mths Sources Of Funds Total Share Capital Equity Share Capital Share Application Money Preference Share Capital Reserves Revaluation Reserves Networth Secured Loans Unsecured Loans Total Debt Total Liabilities 2,742.53 2,259.53 0.00 483.00 -1,574.00 0.00 1,168.53 1,470.75 1,444.85 2,915.60 4,084.13 Mar '06 12 mths Application Of Funds Gross Block Less: Accum. Depreciation Net Block 3,975.11 1,157.63 2,817.48 8,229.61 2,637.18 5,592.43 506.52 13.83 17.91 152.48 122.76 293.15 560.82 1,696.97 12,791.22 3,123.83 9,667.39 941.13 569.93 27.62 198.59 147.67 373.88 950.88 349.38 15,562.75 4,739.86 10,822.89 1,721.82 4,928.81 42.73 329.59 140.86 513.18 2,278.21 2,203.57 22,834.40 7,907.34 14,927.06 462.58 2,755.13 46.70 430.12 129.13 605.95 3,533.15 151.31 2,592.86 2,592.86 0.00 0.00 -413.71 0.00 2,179.15 3,539.77 710.74 4,250.51 6,429.66 Mar '07 12 mths 2,635.36 2,635.36 3.76 0.00 906.91 0.00 3,546.03 5,454.43 1,060.33 6,514.76 10,060.79 Mar '08 12 mths 3,100.10 3,100.10 18.23 0.00 8,176.09 0.00 11,294.42 5,564.93 2,014.43 7,579.36 18,873.78 Mar '09 12 mths 3,299.84 3,299.84 44.45 0.00 8,112.95 0.00 11,457.24 5,988.61 537.81 6,526.42 17,983.66 Mar '10 12 mths Mar '07 12 mths Mar '08 12 mths Mar '09 12 mths Mar '10 12 mths

Capital Work in Progress 95.91 Investments Inventories Sundry Debtors Cash and Bank Balance Total Current Assets Loans and Advances Fixed Deposits 307.03 8.81 90.82 40.12 139.75 1,408.64 88.97

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Total CA, Loans & Advances Deffered Credit Current Liabilities Provisions Total CL & Provisions Net Current Assets

1,637.36 0.00 762.24 11.39 773.63 863.73

2,550.94 0.00 2,180.21 53.84 2,234.05 316.89 0.00 6,429.67 1,236.57 8.40

1,674.14 0.00 2,709.98 81.82 2,791.80 -1,117.66 0.00 10,060.79 2,308.87 13.44

4,994.96 0.00 3,496.04 98.65 3,594.69 1,400.27 0.00 18,873.79 2,279.41 36.37

4,290.41 0.00 4,313.76 137.76 4,451.52 -161.11 0.00 17,983.66 1,960.75 34.59

Miscellaneous Expenses 0.00 Total Assets Contingent Liabilities Book Value (Rs) 4,084.15 213.92 3.03

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3G OVERVIEW
3G is a short term for third-generation wireless, and refers to near-future developments in personal and business wireless technology, especially mobile communications. This phase is expected to reach maturity between the years 2003 and 2005.

The third generation, as its name suggests, follows the first generation (1G) and second generation (2G) in wireless communications. The 1G period began in the late 1970s and lasted through the 1980s. These systems featured the first true mobile phone systems, known at first as "cellular mobile radio telephone." These networks used analogue voice signalling, and were little more sophisticated than repeater networks used by amateur radio operators. The 2G phase began in the 1990s, and much of this technology is still in use. The 2G cell phone features digital voice encoding. Examples include CDMA, TDMA, and GSM. Since its inception, 2G technology has steadily improved, with increased bandwidth, packet routing, and the introduction of multimedia. The present state of mobile wireless communications is often called 2.5G. pected to include capabilities and features such as: Ultimately, 3G is ex-

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Enhanced multimedia (voice, data, video, and remote control) Usability on all popular modes (cellular telephone, e-mail, paging, fax, videoconferencing, and browsing).Broad Routing bandwidth flexibility and high speed (upwards satellite, of 2 Mbps) LAN)

(repeater,

Operation at approximately 2 GHz transmit and receive frequencies Roaming capability throughout Europe, Japan, and North America

While 3G is generally considered applicable mainly to mobile broadband, it is also relevant to fixed wireless and portable wireless. The ultimate 3G system might be operational from any location on, or over, the earth's surface, including use in or by: Homes Businesses Government offices Medical The establishment.

military Personal and commercial land vehicles Private and commercial

watercraft and marine craft Private and commercial aircraft (except where passenger use restrictions apply) Portable (pedestrians, hikers, cyclists, campers)

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Space stations and spacecraft Proponents of 3G technology promise that it will "keep people connected at all times and in all places." Researchers, engineers, and marketeers are faced with the challenge of accurately predicting how much technology consumers will actually be willing to pay for. (Recent trends suggest that people sometimes prefer to be disconnected, especially when on vacation.) Another concern involves privacy and security issues. As technology becomes more sophisticated and bandwidth increases, systems become increasingly vulnerable to attack by malicious hackers (known as crackers) unless countermeasures are implemented to protect against such activity.

ANALYSIS

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Analysis has done on the part of revenue which is basically divided into two parts: Validation Computation There are four types of report which have to be analyzed: Minutes of usage report Daily recharge Physical Daily adjustment Daily recharge flexi

VALIDATION In validation there are two types of report which are given by the central IT department and one which is given by the local IT department in which first have

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to analyze the full 3G data. In this there is difference in between of both the reports. Its have to find out the difference.

This is a local IT report .

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This is the central IT report.

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INTERPRETATION STEPS OF VALIDATION When we got the report from central IT department and local IT report than the step one is: First we copy the data from (MOU) 3G folder and make a new sheet in excel and rename the sheet to local because in 3G folder the data are from local IT and the paste it in the renamed sheet. This can be done in the date wise manner copying data from 3G folder. And the central IT data is find out in the folder which is under the 3G folder. That central IT data copied to another new sheet with rename the sheet to central. This is also done in the date wise manner. This is separately done mainly in the four reports. MOU, DAILY RECHARGE, DAILY RECHARGE FLEXI, AND ADJUSTMENT. These all done copy separately in date wise manner in these four report. The next step is to make pivot table (it is the summary of the report) separately of local sheet and central sheet. Then we copy the three columns from central pivot and paste in the local pivot with numerical data.

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 After that the central IT columns minus the local IT columns.

After this whole process we get the difference amount between the local IT and central IT.

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FINDINGS Getting the difference between central IT and the local IT report.

In findings we have found the difference between local IT and central IT report reason behind this that we have got the report from the two end. Sum of charges of central minus the sum of charges of local

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MEANING OF REVENUE:For a company, this is the total amount of money received by the company for goods sold or services provided during a certain time period. It also includes all net sales, exchange of assets; interest and any other increase in owner's equity and is calculated before any expenses are subtracted. Net income can be calculated by subtracting expenses from revenue. In terms of reporting revenue in a company's financial statements, different companies consider revenue to be received, or "recognized", different ways. For example, revenue could be recognized when a deal is signed, when the money is received, when the services are provided, or at other times. There are rules specifying when revenue should be recognized in different situations for companies using different accounting methods, such as cash basis and accrual basis accounting.

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CHARGING REVENUE FROM THESE REPORTS: Minutes of usage report. (SMS,Roaming,Call). Recharge report Adjustment report (Free call alert, heroscope, railways, beauty tips etc). Recharge fee report (Special tariff voucher).

MINUTES OF USAGE REPORT:

MOU report means how many minutes the person talk .In this report it is day wise manner its mention in report how much time did customer talk on the phone. In this report various columns are present like: type, call date, code, call type, mou, charges and sum of call count. This mou report is helps to compute the financial data and to collect the revenue.

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RECHARGE REPORT: Whenever the customer recharge their phone the whole data available to the local and central department it is also termed as daily recharges.in this report various data are available for computation like:-recharge date, type, recharge type and count of amount. ADJUSTMENT REPORT:It is also very important for computation. Whenever the customer subscribe for horoscope, railways, beauty tips, missed call alert, news alert, job alert etc. This can be done on the basis of the adjustment report and also give full information of revenue. In this report the available data are:-type, adjustment date, adjustment codes, sum of adjustment, count of mobile number.

RECHARGE FEE REPORT:-

In this report the full detail of STV ( special tariff voucher ) are available in that report . This report is also helpful in generating revenue.

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CONCLUSION
During this four weeks summer training in IDEA CELLULAR I learned many functions of Finance such as-3G revenue validation and computation. I also learned the different strategies, the way of working in the company, the culture and the things done for the promotion of their products in the new market.

For completing this project I worked every day in a week. It was a great experience for me to work with company like IDEA. It will provide great opportunity to me to work in the telecom sector in the future scenario. I will try to adopt all those things in my professional life what I learned while doing this project.

This practical training has provided me the knowledge about various functions of telecom industry especially of finance department. Now I am feeling much more confidence in me.

I am highly grateful to the IDEA family for the support and guidance given to me for the successful completion of my practical training.

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Finally I want to say that it was the great experience for me to take first step towards corporate world and work in the company like IDEA.

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BIBLIOGRAPHY

The following information that is given in this project has been stored from the following sources.

Websites on internet:
www.ideacellular.in www.google.com www.wikipedea.com www.rediff.com

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