CHAPTER-1

INTRODUCTION & THEORETICAL BACKGROUND

1
INTRODUCTION

The main objective of the study is to acquire knowledge about the organization
structure, to know the profile of the company and to study the different
departments in the organization. The study aims at having a practical
knowledge of the application of the management theories and to know the role
played by the organization in the industry.

The organization under study- Idea Cellular Limited comes under the services
sector providing telecommunication services. The study aims to find how
business is carried out by a telecommunication service provider through the
coordination of various departments in the organization on a daily basis. The
study of the organization was carried out at the zonal office in kottayam,
Kerala.

The zonal office at Kottayam is one of the ten offices at the zonal level in
Kerala. The zonal offices come under the regional office situated in Ernakulam,
Kerala. The zonal office follows a dual reporting pattern in the organizational
hierarchy, i.e., the department heads report to zonal head in the vertical
hierarchy as well as to the department head at the regional office in the vertical
hierarchy. This is one of the key features found in the organizational reporting
hierarchy in the vertical organizational structure.

2
THEORETICAL BACKGROUND OF THE STUDY

The Internet has grown tremendously during the past years. It radically changes
the way people live, work and consume. It represents a tremendous opportunity
as well as threats.
Internet usage in India continues to grow at a slow but steady pace, both in
breadth and depth, with the overall internet-using population in urban India
reaching 30.32 million - a growth of 28% from April 2006 to April 2007. The
penetration of the internet among urban Indians stands at 9% now, assuming
the total urban population at 336 million (Juxt Consultant 2006)
Unlike the '70s and '80s when business-related travel was not seen much, the
'90s, particularly the dawn of the twenty-first century, has witnessed intensive
business travels, and this is gaining momentum with time. India too is on the
move and wants to stay connected anytime, anywhere-whether on a train or
bus, in a hotel or conference hall, within India or abroad. Meeting this need of
business travelers are data cards and USB modems that have become the
preferred solution, even before wireless mobile broadband is introduced in the
country. At present, there are 10 million data cards, USB modems, and
Internet-enabled mobile phones in the Indian market.
With India on the move, the data card market is flourishing even as low,
inconsistent speed remains an issue. In this already competitive market, it
becomes essential for Internet data card players to understand the different
factors that affect people using the Internet data card as a new wireless device
for internet connection There are many benefits that attract people to choose
internet data card for access to the internet as convenience, time saving,
wireless connectivity and possibly affordable , however, many people are often
hold back as fear of low speed, high usage charges and using issues in relation
to internet data card usage.

3
 CHAPTER-2
INDUSTRY, COMPANY AND SERVICES PROFILE

4
INDUSTRY PROFILE

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.

Much of the growth in Asia Pacific Wireless Telecommunication Market is

spurred by the growth in demand in countries like India and China. India‘s
mobile phone subscriber base is growing at a rate of 82.2%. China is the
biggest market in Asia Pacific with a subscriber base of 48% of the total
subscribers in Asia Pacific. Compared to that India’s share in Asia Pacific
Mobile Phone market is 6.4%. Considering the fact that India and China have
almost comparable populations, India’s low mobile penetration offers huge
scope for growth.

History of Indian Telecommunications

Started in 1851 when the first operational land lines were laid by the
government near Calcutta (seat of British power). Telephone services were
introduced in India in 1881. In 1883 telephone services were merged with the
postal system. Indian Radio Telegraph Company (IRT) was formed in 1923.
After independence in 1947, all the foreign telecommunication companies were
nationalized to form the Posts, Telephone and Telegraph (PTT), a monopoly
run by the government's Ministry of Communications. Telecom sector was
considered as a strategic service and the government considered it best to bring
under state's control.

5
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 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.

6
Cellular services can be further divided into two categories: Global System for
Mobile 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.

Classification of Telecommunication services

1. Basic services
2. Cellular services
3. Internet Service Provider (ISP)

Cellular Service

Overview

There are five private service operators in each area, and an incumbent state
operator. Almost 80% of the cellular subscriber base belongs to the pre-paid
segment.

The DoT has allowed cellular companies to buy rivals within the same
operating circle provided their combined market share did not exceed 67 per
cent. Previously, they were only allowed to buy companies outside their circle.

Growth Drivers

7
Opening up of international and domestic long distance telephony services are
growth drivers in the industry. Cellular operators now get substantial revenue
from these services, and compensate them for reduction in tariffs on air time,
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.

The Key players in the Telecom Market in India

Cellular Service provider:

1. BSNL
2. Airtel
3. Vodafone
4. Idea
5. Reliance
6. Tata indicom
7. Aircel
8. MTS
9. DOCOMO

8
COMPANY PROFILE

IDEA CELLULAR LIMITED

Mission:

“Delight our customers by meeting their communication requirements anytime

anywhere”

Vision:

“To be the most profitable cellular company in India”

Aditya Birla Group Values:

Integrity – Honesty in every action.

Commitment – Deliver on the promise.

Passion – Energized Action.

Seamlessness – Boundary less in letter and spirit.

Speed – One step ahead always.

An Aditya Birla Group Company

Registered Office: Suman Tower, Plot No. 18, Sector-11, Gandhinagar–
382011, India

Corporate Office: 5th Floor, Windsor, Off C.S.T. Road, Near Vidya Nagari,
Kalina
9
Santacruz (East), Mumbai 400 098, India

Founded in 1995, is currently one of the leading GSM mobile service providers
in India. IDEA Cellular became a public limited company in March 2007 by
being listed on the Bombay Stock Exchange (BSE) and the National Stock
Exchange (NSE).

As India's leading GSM Mobile Services operator, IDEA Cellular has licenses
to operate in 17 circles. With a customer base of over 47 million, IDEA
Cellular has operations in Delhi,Maharashtra, Goa, Gujarat, Andhra Pradesh,
Madhya Pradesh, Chattisgarh, Uttaranchal, Haryana, UP-West, Himachal
Pradesh and Kerala. IDEA Cellular's footprint currently covers approximately
45% of India's population and over 50% of the potential telecom-market. As a
leader in Value Added Services, Innovation is central to IDEA's
VAS Factory. It is the first cellular company to launch music
messaging with 'Cellular Jockey', 'Background Tones', 'Group
Talk', a voice portal with 'Say IDEA' and a complete suite of
Mobile Email Services.Idea Cellular is a wireless telephony
company operating in various states in India.

Idea Cellular is a wireless telephony company operating in various states in

India. It initially started in 1995 as a join venture between the Tatas, Aditya
Birla Group and AT&T by merging Tata Cellular and Birla AT&T
Communications.
Initially having a very limited footprint in the GSM arena, the acquisition of
Escotel in 2004 gave Idea a truly pan-India presence covering Maharashtra
(excluding Mumbai), Goa, Gujarat, Andhra Pradesh, Madhya Pradesh,
Chattisgarh, Uttar Pradesh (East and West), Haryana, Kerala, Rajasthan and
Delhi (inclusive of NCR).
The company has its retail outlets under the "Idea n' U" banner. The company
has also been the first to offer flexible tariff plans for prepaid customers. It also
offers GPRS services in urban areas.
10
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. Idea has
become fifth largest company with a subscriber base of 3.1 crores customers.

OPERATING CIRCLES:

• The entire Indian region is divided into 22 circles that are divided into
three categories based on their economic potential: A,B and C.
• Currently, IDEA Cellular exploits more than 60% of India’s telephony
potential. It operates in some of the top Indian circles. These are:
Andhra Pradesh & Delhi (inclusive of NCR), Gujarat, Haryana,
Himachal Pradesh, Kerala, Madhya Pradesh & Chattisgarh, Mumbai,
Maharashtra & Goa, Rajasthan, Uttar Pradesh (W), and Uttar Pradesh
(E).
• The 17 circles where IDEA Cellular operates are further categorized into
established and new service areas.
• Established services areas include: The established service areas are
Delhi, Andhra Pradesh, Gujarat and Maharashtra, Haryana, Kerala,
Madhya Pradesh and Uttar Pradesh (West).

• New Service areas include: Uttar Pradesh (East), Rajasthan, Himachal

Pradesh, Bihar, Mumbai, Karnataka and Punjab.
• IDEA Cellular is also going to expand its business in Orissa and Tamil
Nadu region which will become the company’s first stepping stone
towards becoming a pan Indian mobile operator.

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SUBSCRIBER BASE

Idea's subscriber base as of March 2009 according to the is as follows

• Maharashtra and Goa - 7,477,60

• Madhya Pradesh and Chhattisgarh- 5,019,627
• Andhra Pradesh- 5,045,051
• Kerala- 4,371,750
• Gujarat- 3,918,150
• Uttar Pradesh(West) and Uttarakhand- 4,093,412
• Delhi- 2,405,168
• Haryana- 1,575,309
• Uttar Pradesh(East)- 2,001,056
• Rajasthan- 1,225,706
• Himachal Pradesh- 141,819
• Mumbai- 751,757
• Bihar & Jharkhand- 863,048

Totalling to 38,889,457 or 9.93%(Approx.) of the total 391,760,569 mobile

connections in India

12
CORPORATE STRUCTURE

CHAIRMAN

MD

COO, North West

COO, South Circle
Circle

COO, Kerala

Chart No.2A
SERVICE PROFILE
13
BUSINESS OFFERINGS OF IDEA

VOICE SERVICES:

Call Conference

Call conferencing an excellent tool for setting up a teleconference of upto 5

people who are located anywhere in the world. This is one easy-to-use facility
and reduces the need to have separate conversations with multiple people. In
today's fast paced world, where the emphasis is on getting it right the first time,
Call Conferencing can be of great help.

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.

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 it’s own SIM cards and GSM

14
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.

BUSINESS APPLICATION:

Idea Remote Meter Reading

Remote meter reading is an area focused on the automatic reading of meters -

the non-manual 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

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.

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Toll Free Numbers Services

Connect your business to any phone across the country.

Toll Free numbers have become an integral part of businesses today. Customer
relies more and more on Toll Free numbers to make contact, queries and even
transact business. But most Toll Free number operates on select phones or
services only. Idea understands your business needs better and for the very first
time offers a Toll Free number which can be accessed from any phone across
the country.

Customized Solution:

SMS/GPRS based solutions for business specific needs

Give the field force true mobile office experience via IDEA Field Applications
(IFA). IFA ensure better time management & control as the data will be
captured & presented in real-time to the managers enabling real time reporting
& better field force management.

By following backward integration your partners/suppliers & vendors can also

be linked to this system thus enabling real-time data flow & completing the
entire supply chain.

Data can be synchronized with enterprise backend system at agreed

configurable frequencies.

GPRS APPLICATION:

Internet on mobile

Idea's 3G compatible network supports General Packet Radio Service (GPRS),

which allows users to access Internet websites and information portals on the
mobile, making it possible to stay informed and remain truly connected in this
dynamically changing and competitive environment. Gone are the days when

16
connecting to a website from the mobile took as long as 2 - 3 minutes. GPRS
compatible handsets ensure that as a user, one is "always on". There is no need
for a dial up connection or any ISP connection.

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. The Idea Net Setter supports the following
standards:

Global System for Mobile Communications (GSM)

• Global System for Mobile Communications (GSM)

• General Packet Radio Service (GPRS)
• Enhanced Data Rates for Global Evolution (EDGE)

The Idea Net Setter supports the following services:

• Data service
• Short message service (SMS)

The EDGE peak rate and effective peak rate are 247kbit/s and 236.8 kbit/s
respectively; the GPRS peak rate is 85.6 kbit/s.The IDEA Net Setter is
connected to a portable computer or PC by a USB interface. In the service area
of the EDGE/GPRS/GSM network, user can wirelessly surf the Internet,
send/receive messages and emails. With the high speed, reliable performance,
and easy operation of the IDEA Net Setter, the users can enjoy much more in
experiencing the wireless network.

17
 CHAPTER-3
ORGANIZATIONAL STUCTURE AND FUNCTIONAL
AREAS

18
 ORGANIZATIONAL CHART OF ZONAL OFFICE KOTTAYAM

ZBM

SALES SDQ FINANCE ENGINEERING

PRE- PAID POST PAID PCO COMPLAINCE COLLECTION RELATION DTH

ASM ZOM TSE CHANNELS ENGINEERS

TSM TSE CHANNELS DST DISTRIBUTOR TECHNICIANS

DISTRIBUTOR DISTRIBUTOR

RETAILER
RETAILER

19
Chart No.3A
ZBM-Zonal Business Manager

SDQ-Service Delivery Quality

PCO-Public Coin Office

DTH-District Technical Head

ASM-Assistant Sales Manager

ZOM-Zonal Operations Manager

TSE-Territory Sales Executive

TSM-Territory Sales Manager

20
DST-Direct Sales Team

KOTTAYAM ZONAL OFFICE

DEPARTMENTS

There are four departments at the zonal office in Kottayam. They are

1. SALES

2. SDQ (SERVICE DELIVERY QUALITY)

3. FINANCE

4. ENGINEERING

21
SALES DEPARTMENT:

22
 ZBM

SALES

PRE-PAID POST-PAID PCO

ASM ZOM TSE

TSM TSE CHANNELS DST DISTRIBUTOR

DISTRIBUTOR DISTRIBUTOR

RETAILER RETAILER

Chart No.3B

The sales department consists of the Pre-Paid, Post-Paid and the PCO function.

Pre-Paid

A Pre-Paid connection is like a cash and carry service, designed for ease of
convenience and mobility. A customer pays in advance for using the services
and the credit balance on the subscription keeps reducing in real time against
usage. A customer can recharge his account by using recharge coupons of
different denominations.
23
Pre-Paid function is headed by the Assistant Sales Manager (ASM) who has the
Territory Sales Manager (TSM) and Territory Sales Executives (TSE) reporting
to him. The TSMs and TSEs handle the distributors who in turn handle the
retailers.

Prepaid cellular services are getting very popular these days. Many people now
prefer prepaid services since they offer a variety of advantages related to
lifestyle and cost control that simply are not available through post-paid
contract based services.

Prepaid cell phones have a distinct advantage over regular subscriptions. They
offer cost control with a fixed price per minute, control over costs with cell
phones distributed by parents, no credit check and increased anonymity.

Get you own cell phone with no credit check!

It's today's safe, convenient, and flexible way to manage your spending on
cellular phones.
Prepaid cell phones are convenient and easy to get because there are:

• no contracts
• no credit checks
• no deposits
• no monthly bills
• no activation or early termination fees

You will be safer and more secure when you own a prepaid cell phone without
paying hefty monthly fees.

Great Cost Control with No surprises!

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Increasing consumer demand for prepaid cellular phones

Prepaid cellular services are currently the fastest-growing segment of the

wireless phone market, perhaps because wireless service can be started up with
no subscription fee for well under $100. More and more people are using this
service to control spending than to get around credit problems.

Prepaid cellular phones are ideal in the following situations:

• If you want to budget your cell phone use, or

• If you want a phone for occasional use but don't want to pay a monthly
service fee or enter a long-term agreement, or
• If you have no credit history or past credit problems, or
• If your usage varies from month to month, or
• If you want to buy your children a phone for emergency use but restrict
the amount of calls they can make, or
• If you are looking for a gift. or
• If you don't feeling comfortable providing information for a carrier
credit check, or
• If you want to learn about your usage patterns before committing to a
long-term monthly billing wireless contract.

Functions of ASM:

1. Handles Pre-Paid sales team.

2. Achievement of sales target.
3. Achievement of recharge target.
4. Achievement of outlet targets.
5. Achievement Pre-Paid data card targets.
6. Giving training to all team members.

25
Territory Sales Manager (TSM)

The TSMs will be handling prime locations. Number of distributors handled by

a TSM in Kottayam zone is 40. They also have specific targets in a month to
achieve.

Territory Sales Executives (TSE)

The TSEs will be handling remote locations, Number of distributors handled by

a TSE in Kottayam zone is around 15. They also have specific targets to
achieve.

Distributors

The distributors will be in charge of distributing Idea’s Pre-Paid products both

SIM cards and USB data cards. The distributors in the Kottayam zone are
handling around 3500 retail outlets.

Post-Paid

As the name suggests, payment is done post usage of the services. A Post-Paid
connection is when subscribers chooses to opt for cellular services by giving
one time activation fees with security deposits and use the services by paying
later once they receive their monthly bills. Subscribers have to commit for a
fixed monthly rental over and above their usage.

Pre-Paid function is headed by the Zonal Operations Manager (ZOM) who has
the Direct Sales Team (DST) and Channels reporting to him.

There six showrooms under Kottayam zonal office.

26
Number of Employees:
Zonal Operations Manager: 1
Direct Sales Team: 10

Functions of Channel:

1. Sales.
2. Collection.
3. Customer retention.

PCO

PCO stands for Public Coin Office. This function is handled by PCO Territory
Sales Executive who has distributors reporting to him/her.
There are 5000 PCOs in Kottayam zone.

SDQ DEPARTMENT

27
 ZBM

SDQ

Post-Paid Pre-Paid

Pre-Paid Pre-Paid
COMPLIANCE COLLECTION RELATIONS Relations Channel Documentation
Support Cell
Team

Chart No.3C
Number of employees: 5

SDQ function is the key interface between customers and rest of the organization.
Post the sales process SDQ handles the operations from activation of the
subscriber, handling their interactions, collections, retention, loyalty activities
across the product.

Post-Paid

28
The Post-Paid vertical handles activation, verification, document collection, bill
distribution and payment collection, retention and loyalty activities for all Post-
Paid customers.

Compliance

The compliance function was earlier called customer care. The function is handled
by the compliance manager. The important functions of compliance is looking into
customer acquisition, EBU (Enterprise Business Unit) Relations or corporate
relations which means maintaining end-to-end activities of corporate customers
and collections.

If the corporate customers default on the payment of the first two bills then the
compliance function is responsible for the collection of money from the third bill
onwards. This is done through hard-core collection by an external agency
appointed by Idea Cellular Ltd. The first two bill collections are soft-collections
handled by the channels.

The compliance function is responsible to manage service centres. Service centres

consist of Showroom Head, Compliance officers, Front desk and channel customer
care officer.

Daily activities of Front desk include:

1. Attend walk-ins in district office and channels.

2. Provide appropriate information about the process and products.
3. Register complaints and request in I-Care (Idea Care).
4. Retention of customers by giving appropriate plans and service.
5. Daily MIS and reports.

Daily activities of compliance officers:

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1. Training channel customer care officers.
2. Audit of channel CCC activities.
3. MIS report.
4. Customer satisfaction check.
5. Periodic channel visit.

Showroom Models:

1. My Idea
2. Idea Points

My Idea is mainly concerned with Post-Paid sales. These are exclusive Idea
showroom located in prime areas of a district. There are a total of 19 My Idea
showrooms coming under the Kottayam Zonal office. The Kottayam zonal office
handles Kottayam, Alleppey and Pathanamthitta districts. The initial cost for
setting up a My Idea showroom is 5 lakhs for interiors and 1 lakh as deposit with
Idea Cellular Ltd. Another function My Idea showrooms is to generate e-bills to
customers who are willing to avail their service. My Idea showrooms are mainly
dealing with the soft bill collection of Post-Paid customers.

Break-up of My Idea showroom in the Kottayam zone:

Kottayam: 6
Alleppey: 8
Pathanamthitta: 5

Idea Points are located in rural areas for promoting Pre-Paid sales. Idea Points are
sub-product of the distributor and it will be owned by the distributor. The initial
cost for setting up an Idea Point is 1 lakh. It should have a minimum area of 150 sq
feet with minimum 50 sq feet for back office. Idea Points consist of one tele caller

30
and FOS (Foot On Sales) for collection, sales and service activities. They will be
handling SIM loss cases and will provide duplicate SIMs for the same. There are
31 Idea Points coming under kottayam zone which consist of Kottayam, Alleppey
and Pathanamthitta districts.

Break-up of Idea Points in Kottayam zone:

Kottayam: 15
Alleppey: 8
Pathananthitta: 8

Collection

The main objective of the collection is to determine and review the Credit and
Exposure Policy.

Objectives of the Credit and Exposure Policy

1. Main objective of the credit policy is to contain exposure and bad debts
with minimum impact on Revenue and customer satisfaction.

2. The policy aims at segmenting subscribers through credit profiling,

usage and payment record and providing them uninterrupted services
while preventing high-risk subscribers from giving exposure through
default and high usage fraud.

3. The policy also aims at providing customized services to high value

customers and automates dunning for the high risk and low-end
subscribers to eliminate subjectivity and reduce exposure.

31
 4. The policy aims to minimize the deviations and to have standardized
processes for Credit across all the circles.

Categorization of Billing System customers is as shown in the next page.

32
Category Segment Basis Approval Authority

A VVIP Customers like Recommended by Circle

influential Political & Sales/SDQ Head & approved
Govt. Officials by Circle Finance Head &
Circle Head
P VIP Commercially or Recommended by the Zonal
Socially Important Head and approved by Circle
Persons. CRA and SDQ Postpaid
head
C Corporate Company Owned and As per process defined for
Company Paid Company Paid Listing
Connections
CI Corporate - Employee is responsible As per process defined for
Individual for payments Listing
M Small & As per the SME Process As per process defined for
Medium SME Listing
Enterprise
G Gold Idea Select As per process defined in
Special Categories
S Silver Idea Select

L Longevity Customers with AON

more than One Year
E Enhanced Customers with AON
greater than 3 months but
less than One Year with
Usage above Circle
Average
F Idea Fixed Customers giving written
requests for fixed credit
limits.
O Others All customers not
covered in any other
category.
D Disputed Customers with Bill As per process defined in
33
Category Dispute to be excluded Exposure Control and Value
from Exposure Based Dunning
Monitoring.
 Category Segment Basis Approval Authority
I Idea Associate Employee & spouse Plans. As per relevant
Channel Partners, Vendors & policies
agencies where bills are deducted
from the monthly payouts
T Test Cards Demo / Test Cards/ Idea
Roaming Test Cards
Table 3A

Definition of Special Categories

Based on the Usage, Payment Pattern and Age on Network, customers would
be enrolled to special categories as defined below:

Enhanced Category (E):

Customers meeting the following criteria shall be enrolled into 'E' category.

1. AON greater than 3 months but less than one year.

2. Billing > Circle average billing for last three months

Customers meeting following criteria may also be enrolled into E category

1. High users churned from competition / Other Idea circles

2. Customers with high advance rental plans (Rental>Rs300), including

new activations excluding High Risk category and are not entitled
for any other premium category.

34
Longevity Category (L):

All customers with Age on Network more than One Year shall be enrolled into
the 'L' category.

Idea Gold (G):

1. Age Criteria: AON>6 months

2. Average Billing >= 4 times of the average postpaid billing (for the
last quarter).

Idea Silver (S):

1. Age Criteria: AON>6 months

2. Average Billing >= 1.5 and < 4 times of the average postpaid billing
(for the last quarter).

For qualifying to be categorized under E, L, G, S categories, the outstanding

above 30 days should be <= Rs. 100 with NIL cheques bounce for insufficient
funds in the last 6 months. Only Individual postpaid subscribers with < 5
connections in the account (excluding High Risk category) is to be considered
for this Special categorization.

Any exceptional enrolment and de-enrolment of customers in to IDEA

SELECT base shall be done with written approval from CRA & SDQ Heads.
De-enrolment:

35
All customers having cheque bounce for reasons of insufficient funds shall be
downgraded to O category in monthly revision (including Idea Select Base).

Once the subscriber has enrolled into IDEA Select base, his status shall be
maintained for one year. (i.e. Gold will remain as Gold & Silver will remain as
Silver only) even if the average billing criteria is not met.

INITIAL CREDIT LIMIT

1. Initial credit limit to all subscribers excluding exceptions (as per clause
2 to 4 below) shall be as under or equivalent to the security deposit paid
whichever is higher.

Category Credit Limit per

connection
A, P Up to Rs.10000
C Up to Rs.5000
M, CI Rs.1000
O,E Rs.500
Table 3B

2. In case of high usage subscribers churned from competition, the

credit limit shall be up to a maximum of the HIGHEST monthly usage
of last three fully paid Bills on recommendation of Sales. SDQ to
update the credit limit after verification of documents. Monthly reports
of such credit limit updations to be provided to Circle CRA by SDQ.
Circle CRA should do a sample check of these accounts / documents.

3. Pre to Post Migration: All customers converting from Pre to Post

would be eligible for credit limit equivalent to highest of the monthly
recharge in last three months.

4. Customer moving from one Idea Circle to other: Customers moving

from one Idea Circle to other would be eligible for the existing limit in

36
 the old circle. The last paid Invoice would need to be provided by the
customer for availing this.

5. Parent/Child Accounts: Credit Limits to be updated in Billing System

to the payment responsibility level. In case of multiple S1 accounts
cumulative credit limits of all S1 accounts to be updated to the payment
responsible account.

CREDIT PROFILING

All post paid subscribers shall be Credit Profiled. The current format and the
credit score for various parameters have been given in Table 3C and Table
3D. At the time of implementation, Circle CRA Head with SDQ Postpaid Head
may modify the parameters appropriately to take care of circle specific
requirements with prior approval from Corporate CRA Head.

Based on the credit profiling score, subscribers shall be classified as High,

Normal, Medium or Low Risk. The Profiling classification and credit limits
should be captured in the billing system.

For profiled accounts the credit limits given at the time of activation, shall be
revised as under.

Credit Limits - O category customers

RISK PROFILE LIMIT

High Risk Rs. 500
Normal Risk Rs. 750
Medium Risk Rs.1000
Low Risk Rs.1500
Table 3C

37
Additional Limit
To the extent of Plan Fee rounded upto nearest 100.

Credit limits of all O category customers only on Advance Rental Plans <=
Rs.300/ may be enhanced by the extent on one month Plan Fee. i.e. customer
profiled as Normal Risk and with Rs. 199 as Plan Fee, the credit limit will be
Rs.950 (Rs. 750+Rs.200 = Rs. 950/).

Credit Limits - E, M and CI category customers

RISK PROFILE LIMIT

High Risk Rs. 750
Normal Risk Rs. 1000
Medium Risk Rs.1500
Low Risk Rs.2000
Table 3D

The Credit limits of customers who opt for Usage Discount Plans may be
enhanced by the usage discount amount. i.e. if the customer is in 'O' category
with 'Medium Risk' and with UDP amount of Rs 150 in his plan, his Credit
Limit shall be Rs 1000+Rs 150 = Rs1150.

In case of the Bill Plan Change from UDP to Non - UDP plan SDQ to ensure
that the additional credit limit given for UDP has been removed.

The Credit Limit applicable would be the HIGHER of Profiled Limit or the
deposit amount given by the customer. The A and P category of customers
would be assigned a specific credit limit based on recommendation of Zonal
Sales Head and approved by Circle CRA head and SDQ Postpaid Head.

REVIEW AND REVISION OF CREDIT LIMITS & CATEGORY

38
Credit limits and category of all postpaid subscribers for whom bills are
generated shall be reviewed every month by the circle CRA. The category
revision will be prior to the Limit Revision.

The checklist for making a customer eligible for limit change will be
Customer should not be in barred or suspended status. Should have used 50%
of the credit limit in any of the last three bills. No cheque bounces in last three
months due to insufficient funds. The Overdue Outstanding should be less than
Rs. 100/.

The revision of Credit Limit shall be done as per below classification:

Category Subscribers Multiplier of Max Bill

(Last 6 months)
A, P, I, T VVIP, VIP, Internal & Test NOT APPLICABLE
category customers
C, CI, M, G, S, L, E & Corporate, Corporate Upto 150%
O Individual, SME, Gold, Silver,
Longevity, Enhanced &
Others

Table 3E

Revised Limit shall be the Deposit amount or the Credit limit as per above or
Existing Limit whichever is highest. No down gradation of Credit limit shall
happen in the revision.

No Revision shall be done on customers in 'F' category.

39
DOWN GRADATION - The customer's credit limit may be downgraded to
Post CPV limits in case he has demonstrated a default behavior. Circle CRA &
SDQ Postpaid Head can decide the criteria for down gradation.

The enhanced Credit Limit shall be communicated through the Monthly Bill to
the customer. SMS / mailer to the customer from SDQ Teams would
specifically communicate any change in the interim period.
Post Monthly Credit Limit updations, each circle needs to review the accounts
with high revised credit limits. The increase in the limit should not exceed
100% of the existing credit limit. Circle CRA to review such accounts and may
revise the credit limit.

Quarterly review of all exclusion categories in exposure i.e. A, P, I & T shall

be done jointly by Circle CRA and SDQ Postpaid Head.

Enhancement of Credit limit other than Monthly Review

Standing Instructions to debit Credit card/ECS - The Credit limit may be

enhanced by Rs. 1000/- i.e. Present Credit Limit +Rs. 1000/. However for
customers where SI/ECS is rejected the additional credit limit may be removed,
this needs to be reviewed every month by the credit team.

Additional Deposit / Deposit paid for Premium services (ISD / Inter

national Roaming etc) - The credit limit shall be enhanced to the extend of the
additional deposit paid.

If Deposit is Waived: the credit limit may be enhanced to the deposit amount
applicable for the Premium service.

On Refund of the Deposit: Credit limit to be reduced to the extent of deposit

refunded, by SDQ team, at the time of cancellation of the Premium Service.

40
Subscriber requests for higher credit limit/Proactive Enhancement in case
of Repeated Barring - Credit limit may be enhanced for a subscriber based on
the following
- Past payments made by him
- Track accounts (existing accounts)
- Additional documents/ details giving more
information of the subscriber.

However, enhancement should be done after the following basic checks are
done. Number of OCB /Disconnections in the account.
Number of times subscriber's credit limit is enhanced in the past.

EXPOSURE CONTROL & VALUE BASED DUNNING

Exposure monitoring of subscribers in different categories shall be as under:

Category Subscribers Action(Intimation & Barring) Action

Basis Mode
A, P VVIP, VIP To be recommended jointly MANUAL
by the Circle SDQ & Circle
CRA Head and approved by
Circle Head.
C, G & S Corporate, Gold & To be monitored on unbilled MANUAL
Silver during the bill cycle, and then
on Billed and Unbilled.
L, E, CI & M Longevity, Enhanced To be monitored on Unbilled AUTO
Corporate - Individual, outstanding till Due date, and
& SME then on Billed and Unbilled
O&F Others & Fixed To be monitored on Billed AUTO
and Unbilled at all times
Table 3F

41
Unbilled Outstanding includes exclusively the to-be-billed cumulative usage
charges and does not include subscription rental, feature charges, taxes etc for
such period.

Subscriber accounts where there is a pending dispute with respect to billed or

unbilled usage amount that cannot be resolved immediately; the account may
be excluded for any restrictive action for a maximum period of 7days by
changing the customer category to 'D - Disputed'. SDQ Postpaid Team shall
incorporate relevant tagging process into billing system to ensure compliance.
If the customer issue is not resolved after 7 days also, selective barring shall be
applied. CRA team to do a weekly review of 'D' category customers who've
crossed 7 days and advise SDQ Postpaid team for removal from 'D' category.

Exposure monitoring thresholds for all categories shall be as under:

Threshold limit Action to be taken

70 % of Credit Limit. Request for Interim payment through
SMS or Tele calling
90 % of Credit Limit or 3 days after Selective Barring** (Barring all levels
SMS whichever is later. except I2 I home calls)
120% of Credit Limit or 3 days after OCB**
Selective Barring whichever is earlier.
15th Day from OCB Suspension
th
60 Day from Suspension Deactivation
**The facilities like GPRS & Roaming to be removed also.
Table 3G

Circle CRA team to forward the list of customer directly appearing on 120%
credit limit in the Exposure Report to SDQ postpaid team for priority SMS /
Out call. In case of non receipt of payment, Selective barring to be installed in
24 hours. Circle may reduce the threshold of 120% for Exception Monitoring,
subject to a minimum of 100% approved jointly by SDQ Postpaid Head &
CRA Head.

42
In case of Manual Action, Circle CRA Team shall forward the Action list of
the eligible subscribers to SDQ Postpaid Team, for suitable action as per above
threshold limits.

Subscribers once barred can be unbarred only on receipt of payment.

Subscribers making part payment can be unbarred only if the Unbilled +
Outstanding falls below the threshold credit limit of 70%.

Promise to Pay: All employees facing the customers can take a PTP from
customer and can resume the services for 24 hours after checking the payment
history of the customer (the eligibility of employees to provide resumption
rights can be mutually decided between CRA and SDQ at each circle).

Exposure Control for Excluded Categories: CRA team shall do monitoring

to keep a watch on the usage from customers in these categories. Appropriate
action shall be taken for the defaulting customers after intimation.

CRA to ensure that all customers appearing in the action list are timely
actioned by SDQ Postpaid Team.

Escalation Process: Customers appeared in the exposure report for action but
were not actioned are to be escalated by the Circle CRA team as per the below
matrix. This shall be done by comparing the previous day's exposure report
with current day's exposure report.

Escalation Matrix:
Subscribers SDQ Head Circle Finance Corp. CRA
Head Head
Corporate, SME Credit Limit + Credit Limit Credit Limit +
5000 +10000 20000
Others Credit Limit + Credit Limit + Credit Limit
3000 5000 +10000

43
 Table 3H

COLLECTION DUNNING (TIME BASED)

Subscribers not paying the billed amount shall be Out Call Barring as under:
Category Basis
A, P On recommendation of SDQ Head and approved by Circle
Head
C On the 45th Day of Bill Cycle (Due Date + 30 days)
CI, M, G, S & L On the last day of the bill cycle
O, E & F On the 22nd day of the bill cycle
Table 3I

Suspension should be done on the 15th from OCB date & Deactivation on the
60th day from the suspension date.

Circle CRA & SDQ Postpaid Head may jointly decide to pre-pone the dunning
if necessary to reduce exposure through defaults in any or all above categories.

MIGRATION OF EXISTING CUSTOMERS TO NEW POLICY

All the existing customers shall be categorized afresh based on this policy and
wherever required the credit limits should be revised.

This policy shall supersede the existing Corporate Credit Policy in the areas
covered by it; also it will override any circle specific policies on credit and
exposure monitoring.

CUSTOMER CREDIT PROFILE FORM

44
Mobile No.
Account No.
Customer Name
Parameters for Credit Rating (Please " V" wherever applicable)
1. Occupation
1) Student / Others
2) Retired / House wife
3) Salaried / Self Employed
4) Doctors / CA / Socially Important
Person
3. No. Of years in Occupation
1) Less than 5 year
2) >5 year <=10 years
3) >10 years <=15 years
4) >15 years
5. Residence House: OWNED / RENTED (circle may decide on the values)
Value of Property if Owned (Rs.)
1) Value <= 300,000
2) >300,000 to < =500,000
3) > 500,000 <= 10,00,000
4) >1000,000
6. Number of years at Present Address
If Owned
1) >1 year <=2 years
2) >2 years <=3 years
3) >3 years <=5 years
4) > 5 years
7. Vehicle owned :
(Indicate each if more than one are
applicable)
1) Two/Three Wheeler
2) A class - like Maruti 800, Fiat, etc.
3) B class - Like Santro / Wagon R /
Zen etc.
4) All cars =>1000 cc
9. Agent's Rating :
1) Average
2) Good
3) V. Good
2. Occupation type,
1) Self Employed.
2) Proprietary / Private Firm
3) Limited Company
4) Govt. / National Bank / Semi-Govt.
etc.
4. Occupation level
1) Trainee / Officer / Executive
2) Managerial (Astt/Dpty/Mgr/Sr.Mgr)
3) Dept. / Br. Head (DGM/ GM etc.)
4) VP and above / Proprietor
Rent per month (Rs.)
1)>1000 < =2000
2)>2000 < =3000
3) >3000 <= 5000
4) >5000
If Rented (No. of Years)
1) >1 year <=2 years
2) >2 years <=3 years
3) >3 years <=5 years
4) >5 years
8. Others:
(Indicate each if more than one are
applicable)
1) Landline at Billing Address
2) Mobile Expenses Reimbursed by Employer
3) Credit Card Holder
4) PAN Card Holder
Email:
CPV Outcome :
45
4) Excellent
Table 3J

Additional Information If Any:

Route Map:

Signature of Profiling Agency Representative

46
 Signature of Supervisor Date
(With seal)

Scoring Sheet For Internal

Purpose Scores are mentioned
against each parameter
1. Occupation 2. Occupation type,
1) Student / Others 1 1) Self Employed. 1
2) Retired / House wife 2 2) Proprietary / Private Firm 2
3) Salaried / Self Employed 3 3) Limited Company 3

47
4) Doctors / CA / Socially Important 4 4) Govt. / National Bank / Semi- 4
Person Govt. etc.
3. No. Of years in Occupation 4. Occupation level
1) Less than 5 year 1 1) Trainee / Officer / Executive 1
2) >5 year <=10 years 2 2) Managerial 2
(Astt/Dpty/Mgr/Sr.Mgr)
3) >10 years <=15 years 3 3) Dept. / Br. Head (DGM/ GM etc.) 3
4) >15 years 4 4) VP and above / Proprietor 4
5. Residence House: OWNED / RENTED (circle may decide on the values)
Value of Property if Owned (Rs.) Rent per month (Rs.)
1) Value <= 300,000 1 1)>1000 < =2000 1
2) >300,000 to < =500,000 2 2)>2000 < =3000 2
3) > 500,000 <= 10,00,000 3 3) >3000 <= 5000 3
4) >1000,000 4 4) >5000 4
6. Number of years at Present Address
If Owned If Rented (No. of Years)
1) >1 year <=2 years 1 1) >1 year <=2 years 1
2) >2 years <=3 years 2 2) >2 years <=3 years 2
3) >3 years <=5 years 3 3) >3 years <=5 years 3
4) > 5 years 4 4) >5 years 4
7. Vehicle owned : 8. Others:
(Indicate each if more than one are (Indicate each if more than one are
applicable) applicable)
1) Two/Three Wheeler 1 1) Landline at Billing Address 1
2) A class - like Maruti 800, Fiat, etc. 2 2) Mobile Expenses Reimbursed by 2
Employer
3) B class - Like Santro / Wagon R / 3 3) Credit Card Holder 3
Zen etc.
4) All cars =>1000 cc 4 4) PAN Card Holder 4
9. Agent's Rating : Email:
1) Average 1 CPV Outcome :
2) Good 2
3) V. Good 3
4) Excellent 4

Rating Criteria: Based on the above scoring the credit class will be
assigned as mentioned in below table:

Points Credit Class

48
 0–5 High
6 – 11 Normal
12 – 17 Medium
>=18 Low
Table 3K

Approval for Enhancement of Credit Limit for Value Based Dunning:

Mobile No(s)
Requested Credit Limit
Existing Credit Limit
Customer Name
Company Name
Date of Activation
Deposits
Average Billing (last 3months)
Expected Billing
Number of Linked Mobiles (with Mobile
Numbers)

Initiated By Recommended By

Name

Department

Location

Reason For Increase

49
 (Signature of SDQ Postpaid Head) (Signature of CRA Head)

Table 3L

Relations

The Senior Executive Relations Officer is in charge of the this function. The
function of the SDQ department is responsible for maintaining good relations with
corporate and Small and Medium Enterprises (SME) accounts. It includes
company paid as well as individual accounts. They are also responsible for
collection of bills from the corporate. They will make routine visits to the
corporate every month to keep up the goodwill of the company.

Responsibilities of the function:

1. Hand holding visit- When a corporate approves Idea as its mobile service
provider, the relations officer will personally visit the corporate office and hand
over the SIM cards.
2. First bill clarification visit- After the issue of the first bill the relations officer
will personally visit the corporate customers and clarifies regarding the bills
and call rates.
3. Pre-verification visit- The relations officer will visit the new company which
has given application for BCR (Bulk Connection Request) for checking the
authenticity of the application.

Corporate Accounts in the Kottayam Zone

50
Kottayam zonal office handles three districts- Kottayam, Alleppey and
Pathanamthitta.

Kottayam: 1000
Pathanathitta: 700
Alleppey: 1200

Pre-Paid

Pre-Paid vertical handles document collection, service provisioning, retention and

channel support activities. Pre-Paid vertical consists of Pre-Paid Relations Team,
Pre-Paid Channel Support Team and Documentation Cell.

Pre-Paid relations team handles:

1. Call analysis of customers.

2. SMS push.
3. Group customers.

Pre-Paid Channel Support:

It is handled by Pre-Paid Channel Support Coordinator in the zonal office. The

Coordinator has to handle the coordination of Pre-Paid/PCO distributor
coordination and retailer coordination. The Kottayam zone handles Kottayam,
Alleppey and Pathanamthitta districts.

Documentation Cell:

The Documentation Cell handles storage and verification of the documents

submitted by the Pre-Paid customers after the Pre-Paid sales is carried out.

51
Customers provide relevant documents to the retailer which is collected by the
Direct Sales Executive (DSE). The DSE work under the distributors. The DSE
takes these documents to the distributor point. An external agency is appointed by
Idea Cellular Ltd who receives the documents from the distributor points. From the
distributor point it is taken to the agency point .The data entry executives will enter
the data into IDMS (Idea Data Management System). Then they send the entered
data to the data warehouse in Ernakulam. Here authentication of the documents is
carried out by comparison of the original company documents with that of the data
entered by the data entry executives.

In case of PCO the shop will be physically verified by the external agency with the
installation address provided by the shop owner.

The Documentation cell has to check the following:

1. A maximum of only four Pre-paid connections is allowed for a particular

customer. It has to check whether a customer is applying for a fifth Pre-Paid
connection after getting permission from the zonal business manager otherwise
they will be barring the fifth connection of that customer.
2. Zero usage barring- If the customer who has active Pre-Paid SIM but has not
used the SIM, he will be barred by the documentation cell.
3. Document Barring- The documentation cell will bar the Pre-Paid SIM if the
customer has provided forged documents or has submitted irrelevant
documents which is against the document regulations as prescribed by
TRAI(Telecom Regulatory Authority of India).
4. De-dup barring- The documentation cell will bar a Pre-Paid SIM if it is found
that it is being used by someone other than the documented user.

Training Imparted to New Joinees in SDQ

Extensive training is done by training and quality department which includes:

52
6. SEP (Idea Service Excellence Programme) to create a common pool of
professional with service knowledge among entry level employees.
7. Introduction to telecom industry.
8. Introduction to products and services of Idea Cellular Ltd.
9. Introduction to different functions and departments of Idea Cellular Ltd.
10. Soft skill training.
11. System training.

Achievements of SDQ in the last financial year

The major achievements are:

1. Implementation of customer first initiative.

2. e-Bill penetration was increased from 4% to 15%.
3. Documentation verification of Pre-Paid subscriber base.
4. Development of a pilot churn prediction model.
5. Revised quality measurement process across all circles.
6. New bill format which has significantly enhanced bill comprehension.
7. Launch of Queue Management System (QMS) and Walk-In analyser
which has helped the company to understand the quantity and type of
Walk-Ins in the showrooms. Through analysis the company has been
able to identify the weak process, fix it and to reduce waiting time at the
showrooms.

53
FINANCE DEPARTMENT:

Number of Employees: 2
On roll staff: 1
Off roll staff: 1

The main function of this department is:

1. To manage the channels.

2. To see if the channels are correctly depositing money.
3. To see if banking transactions are proper.
4. Bank reconciliation management.
a. Bank charges analysis.
b. Bank reconciliation and revenue reconciliation.
c. To see if there is proper credit.

It is responsible to handle both Pre-Paid and Post-Paid services.

Post-Paid Services:

54
Idea has a decentralized accounting system with each circle maintaining its
book of accounts. Only the consolidation of all circle accounts is done
centrally.

Idea maintains a non-operating collection account, which is transferred to the

pooling account on a daily basis. It is maintaining this account with Federal
Bank. The money from this pooling account is transferred to the Corporate
account. It uses CMS-GEN software for this purpose. The zonal accounts are
closed on the 3rd and 4th of every month and is sent to the Regional Office in
Ernakulam.

Pre-Paid Services:

The department is responsible for collection of money from the distributors for
Pre-Paid and PCO services. It collects money from distributors through cash
and carry and by stock bills.

Other Functions:

1. To handle employee claims like food and travel expense.

2. To clear doubts on incentives and claims from distributors.

All reimbursements are made in cash(unless the amount exceeds Rs.20,000 in

this case the reimbursement will be made by a crossed cheque). All expenses
actually incurred for official work will be reimbursed without any limit, subject
to its approval by its concerned HOD.

Key Accounting Policies:

The Institute of Chartered Accountants of India(ICAI), which is the premier

accounting body of India has issued a number of accounting standards.

55
Compliance of these standards is required both under Companies Act and
Income Tax Act. Almost all of these standards issued by ICAI have also been
mandatory by National Accounting Board set up under Ministry of Company
Affairs for Indian companies. Idea complies with all the required mandatory
standards. As of date ICAI has issued 31 accounting standards.

1. Basis of Preparation of Financial Statements:

The Consolidated Financial Statements of Idea Cellular Limited (“the

Company”) and its subsidiary companies (together referred to as the “Group”)
have been prepared in accordance with Accounting Standard 21 on
‘Consolidated Financial Statements’ issued by the Institute of Chartered
Accountants of India (“ICAI”). The Consolidated Financial Statements are
prepared under historical cost convention on accrual basis. The mandatory
applicable accounting standards have been followed in preparation of these
financial statements.

2. Principles of Consolidation:

The basis of preparation of the Consolidated Financial Statements is as follows:

The Financial Statements (The Balance Sheet, the Profit and Loss Account, and
the Cash Flow Statement) of the Company and its subsidiaries have been
combined on a line-by-line basis by adding together the book values of like
items of assets, liabilities, income and expenses, after eliminating intra-group
balances, transactions and the resulting unrealized profit or losses. The
Financial Statements of the subsidiaries used in the consolidation are drawn
upto Sep 30, 2008, the same reporting date as that of the Company. The
differential with respect to the cost of investments in the subsidiaries over the
Company’s portion of equity is recognised as Goodwill or Capital Reserve, as
the case may be. The Consolidated Financial Statements are prepared using

56
uniform accounting policies for like transactions and other events in similar
circumstances except where stated otherwise.

The list of subsidiaries, which are included in this Consolidated Financial

Statements along with Company’s holding therein, is as under:
No. Name of the Company Voting Power % as at
Sep 30, 2008 March31, 2008
1 Swinder Singh Satara 100 100
and Co. Limited
2 Aditya Birla Telecom 100 100
Limited
3 Idea Cellular Services 100 100
Limited
4 Idea Cellular 100 100
Infrastructure Services
Limited
5 Idea Cellular Tower 100 100
Infrastructure Limited
Table 3M
All the above subsidiaries are incorporated in India.

3. Fixed Assets:

Fixed assets are stated at cost of acquisition and installation less depreciation.
Cost is inclusive of freight, duties, levies and any directly attributable cost of
bringing the assets to their working condition for intended use. Site restoration
cost obligations are capitalized based on a constructive obligation as a result of
past events, when it is probable that an outflow of resources will be required to
settle the obligation and a reliable estimate of the amount can be made. Such
costs are depreciated over the remaining useful life of the asset.

4. Expenditure during pre-operative period of license:

57
Expenses incurred on project and other charges during construction period are
included under pre-operative expenditure (grouped under capital work in
progress) and are allocated to the cost of fixed assets on the commencement of
commercial operations.

5. Depreciation and amortization :

Depreciation on fixed assets is provided on straight line method (except stated

otherwise) on the basis of estimated useful economic lives as given below:-

Tangible Assets Years

Buildings 9 to 30
Network Equipments 10 to 13
Optical Fibre 15
Other Plant and Machineries 5
Office Equipment 3 to 9
Computers 3
Furniture and Fixtures 3 to 10
Motor Vehicles 4 to 5
Leasehold improvements Period of lease
Table 3N
Intangible Assets :

Cost of Rights and Licenses including the fees paid on fixed basis prior to
revenue share regime is amortized on commencement of operations over the
period of license. Software, which is not an integral part of hardware, is treated
as intangible asset and is amortized on straight-line basis over their useful
economic lives, estimated by the management between 3 to 5 years.

6. License Fees – Revenue Share:

With effect from August 1, 1999 the variable Licence fee computed at
prescribed rates of revenue share is being charged to the profit and loss account
in the Period in which the related revenue arises. Revenue for this purpose

58
comprises adjusted gross revenue as per the license agreement of the license
area to which the license pertains.

7. Inventories:

Inventories are valued at cost or net realisable value, whichever is lower.

8. Foreign currency transactions:

Transactions in foreign currency are recorded at the exchange rates prevailing

at the dates of the transactions. Gains/losses arising out of fluctuation in
exchange rates on settlement are recognised in the Profit and Loss account.
Foreign currency monetary assets and liabilities are restated at the exchange
rate prevailing at the Period end and the overall net gain/ loss is adjusted to the
Profit and Loss account. In case of Forward Exchange Contracts, the difference
between the forward rate and the exchange rate at the date of transaction is
recognised in the Profit and Loss account over the life of the contract.

9. Leases:

Operating: Lease of assets under which significant risks and rewards of

ownership are effectively retained by the lessor are classified as operating
leases. Lease payments under an operating lease are recognised as expense in
the profit and loss account, on a straightline basis over the lease term.

Finance: Leased assets acquired on which significant risk and reward of

ownership effectively transferred to the Company are capitalised at lower of
fair value or the amounts paid under such lease arrangements. Such assets are
amortised over the period of lease.

10. Taxation:

59
Current Tax: Provision for current income tax is made on the taxable income
using the applicable tax rates and tax laws.

Deferred Tax: Deferred tax arising on account of timing differences and

which are capable of reversal in one or more subsequent periods is recognised
using the tax rates and tax laws that have been enacted or substantively
enacted. Deferred tax assets are not recognized unless there is virtual certainty
with respect to the reversal of the same in future years.

11. Contingent Liability:

Disclosure for contingent liabilities are considered to the extent of notices /

demands received by Idea group.

12. Retirement Benefits:

Contributions to Provident and pension funds are funded with the appropriate
authorities and charged to the profit and loss account.

Contributions to superannuation are funded with the Life Insurance

Corporation of India and charged to the profit and loss account.

Liability for gratuity as at the period end is provided on the basis of actuarial
valuation and funded with Life Insurance Corporation of India.

Provision in accounts for leave benefits to employees is based on the revised

AS-15 which is as under:

• Actuarial valuation done by projected accrued benefit method at the period

end for

60
long term compensated absences.
• On actual basis for the portion of accumulated leave which an employee can
encash
during the short term period.

13. Revenue Recognition and Receivables:

Revenue on account of mobile telephony services and sale of handsets and

related accessories is recognised net of rebates, discount, service tax, etc. on
rendering of services and supply of goods respectively. Recharge fees on
recharge vouchers is recognised as revenue as and when the recharge voucher
is activated by the subscriber

Unbilled receivables, represent revenues recognised from the bill cycle date to
the end of each month. These are billed in subsequent periods as per the terms
of the billing plans.

Debts (net of security deposits outstanding there against) due from subscribers,
which remain unpaid for more than 90 days from the date of bill and/or other
debts which are otherwise considered doubtful, are provided for.

Provision for doubtful debts on account of Interconnect Usage Charges (IUC),

Roaming Charges and passive infrastructure sharing from other telecom
operators is made for dues outstanding more than 180 days from the date of
billing other than cases when an amount is payable to that operator or in
specific case when management is of the view that the amount is recoverable.

14. Investments:

Current Investments are stated at lower of cost or fair value in respect of each
separate investment.

61
Long-term investments are stated at cost less provision for diminution in value
other than temporary, if any.

15. Borrowing Cost:

Interest and other costs incurred in connection with the borrowing of the funds
are charged to revenue on accrual basis except those borrowing costs which are
directly attributable to the acquisition or construction of those fixed assets,
which necessarily take a substantial period of time to get ready for their
intended use. Such costs are capitalized with the fixed assets.

16. Earnings Per Share:

The earnings considered in ascertaining the Group’s EPS comprises the net
profit after tax, after reducing dividend on Cumulative Preference Shares for
the Period (irrespective of whether declared, paid or not), as per Accounting
Standard 20 issued by the Institute of Chartered Accountants of India. The
number of shares used in computing basic EPS is the weighted average number
of shares outstanding during the Period. The diluted EPS is calculated on the
same basis as basic EPS, after adjusting for the effects of potential dilutive
equity shares unless the effect of the potential dilutive equity shares is anti-
dilutive.

17. Impairment of Assets:

Assets that are subject to impairment are reviewed for impairment whenever
events or changes in circumstances indicate that the carrying amount may not
be recoverable. An impairment loss is recognized for the amount by which the
assets carrying amount exceeds its recoverable amount. The recoverable
amount is higher of the assets fair value less costs to sell and value in use, For

62
the purpose of impairment, assets are grouped at the lowest levels for which
there are separately identifiable cash flows.

18. Provisions:

Provisions are recognized when the Group has a present obligation as a result
of past events; it is more likely than not that an outflow of resources will be
required to settle the obligation; and the amount has been reliably estimated.

19. Issue Expenditure:

Expenses incurred in connection with issue of equity shares are adjusted

against share premium.

20. Employee Stock Option:

In respect of stock option granted pursuant to the company’s Employee Stock

Option Scheme, the intrinsic value of the option is treated as discount and
accounted as employee

63
ENGINEERING DEPARTMENT:

The department is responsible for getting approval for location a tower,

building and maintenance of the tower. Technical problems would include
network traffic congestion at a particular tower leading to customers unable to
connect their calls or break down of a particular tower or problems arising at
Mobile Switching Centre(MSC) and Base Station(BTS).
Each Engineer would have to monitor 80-85 towers in a particular zone.

DTH has the Engineers under him/her who has the technicians under him. The
reporting is carried out in the same hierarchy.

IDEA CELLULAR

IDEA Cellular is a publicly listed company, having listed on the Bombay Stock
Exchange (BSE and the National Stock Exchange (NSE) in March 2007.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.

64
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 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.

SHARE HOLDING PATTERN

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 license.

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. 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 98.3% of the total shares of the
company.
Idea has successfully launched 3 more new circles (states) in India viz.
Rajasthan, Himachal Pradesh and UP (East) to make itself a pan-India player.
65
Recently, Idea got licenses to operate in Mumbai & Bihar. They are awaiting
the spectrum from DoT.

Shareholding Pattern as on September 30, 2008

Promoter and Promoter No of Shares % holding

Group
Indian 1 ,520,445,714 49.05%
Sub Total 1,520,445,714 49.05%

Public Shareholding No of Shares % holding

Foreign Holding 1 ,273,668,210 41.08%
Indian Institutions 178,549,867 5.76%
Others 127,431,418 4.11%
Sub Total 1,579,649,495 50.95%
Total 3,100,095,209 100.00%

Table 3O

66
Partners:
On Mobile Asia Pacific Ltd.

Cellebrum India Ltd.

Siddhivinayak Astro Services Ltd.
Kodiak Ltd.
mauj
Net4nuts India Ltd.
Yahoo India
Rediff
India Times
Mobile2win
Sify
NDTV
Roamware.inc
Starhome
Bharati Telesoft
Lowe India Pvt Ltd.
Lintas Media Group
AdFactors PR
Nokia- Siemens
Ericsson
Atos Origin

OPREATIONS IN KERALA

Idea Cellular began its operations in Kerala in 2004 by taking over of Escotel
Mobile Communications Private Limited. In the beginning it had one regional
office and six zonal offices- the regional office being in Ernakulam and the six
district offices being Ernakulam, Trivandrum, Kottayam, Trichur, Kannur and
Calicut.

67
Now there are ten district offices - Ernakulam, Trivandrum, Kottayam, Trichur,
Kannur, Calicut, Kollam, Pathanamthitta, Palakkad, Malapuram.

EMPLOYEES IN KOTTAYAM ZONAL OFFICE (ORGANIZATION)

The zone includes Kottayam and alleppey.

Total Number of Employees: 60

Average Age of Employees: less than 35
Number of male employees: 57
Number of Female employees: 3
Pay Package of Employees: 2.5 lakhs to 10 lakhs from bottom to the
top level of the organization chart.
Minimum Educational Qualification: MBA for ASM, ZOM.
Graduation for TSM, TSE
B.E./B.Tech for DTH
Office Timings: 9 am to 6 pm
Working days: Monday to Saturday (Saturday is an optional working day
for all departments except SDQ)
Employee Grievance Redressal Mechanism: Employee grievances are
reported to the various heads in heads in the regional office or the ZBM
through the appropriate hierarchy which then reported to the HR department at
the regional office.

RECRUITMENT POLICY

The recruitment function is carried out by the Human Resource (HR)

department at the regional office in Ernakulam.

Experienced Personnel- The recruitment is carried out from other companies.

68
Fresher- The recruitment is carried out through campus interviews in different
colleges in Kerala.

ENGNINEERING Department: Recruitment from Engineering colleges in

Kerala

SALES Department: Recruitment from MBA colleges in Kerala.

69
 CHAPTER-4
RESEARCH METHODOLOGY

RESEARCH OBJECTIVE

70
The objective of the research study is:

1. To carry out a competitor analysis of USB data cards available in the

market with the different tariff plans.

2. To understand the customer preference on the internet usage and USB

data cards and make suggestions to the company as to how they can
consolidate and improve their position in the data card market segment.

SIGNIFICANCE OF THE RESEARCH STUDY

The study is significant in terms of finding the out the competitors in the USB
data card segment for availing internet service for Idea and also to find the
scope USB data card market segment for Idea’s newly launched NetSetter
(Wireless USB data card) by identifying customer preference in the usage of
internet.

SCOPE OF THE RESEARCH STUDY

The research was conducted in Kerala and the respondents were chosen on the
basis of their usage of Internet on random sampling basis.

LITERATURE REVIEW

71
Davidson, Sooryamoorthy and Shrum (2002) our objective in the present work
is to explore the present status and meaning of the Internet among scientists for
a location in the developing world that is in many respects special. The central
reason analysts have identified a Kerala Model is that the level of social
development within the state is much higher than one would expect based on
its level of economic development. Owing to its reputation for labor militancy,
capital investment and economic growth in the state remain low. Economic
growth has been only around half the national level for India (Gulati 1995)
Unemployment rates are among the highest in India. In particular there is a
problem of unemployment for those with higher degrees (Mathew 1995; EPW
1994). From 1985 through 1994 unemployment registration among
professional graduates increased nearly 200 percent (Iyer and MacPherson
2000). Although extreme forms of poverty are rare, the proportion living below
the poverty line is still high. Certain sectors of the population, such as the tribal
people who comprise roughly one percent of the state population, remain
"backward," and deaths from starvation have recently been reported. Beyond
education and literacy, there are numerous and far-reaching social programs
and initiatives, including public food distribution, labor market interventions to
raise rural and urban wages, health services, and infrastrstucture that includes
schools, hospitals, and dispensaries (Franke and Chasin 1994; Kannan 1995).
Demographic indicators of their success are low birth and death rates. These
have declined so rapidly that Kerala resembles countries that have completed
the demographic transition associated with industrialization (Bhat and Rajan
1990). The Kerala sex ratio of 1036 females to 1000 males is, again, closer to
European and North American ratios than those of India as a whole. Kerala has
the third highest rate of mobile phone usage in the country after New Delhi and
Mumbai, with over 300,000 users in the state, about seven percent of the Indian
total (Parthasarathy 2001). By late 2000, there were approximately 50,000
Internet connections in the state, ranking it eighth among Indian states. Dey
(2008) Growing businesses in all segments, necessity to access emails and
corporate applications during urgent business trips and the urge for some

72
entertainment while on the move are some drivers increasing the demand for
data card usage. Apart from these factors, as the name of Tata Indicom's data
card, 'Plug 2 Surf', suggests, ease of use with plug and play factor is also a
driver for growth. SP Shukla, president, Personal Business, Reliance
Communications, says that faster surfing and higher download speeds,
convenience of surfing the Internet while on the move, simple to use, and
affordable tariffs are among the key reasons for the data card growth, in both
the laptop and desktop segments. Wireline broadband connections are yet to
penetrate the vast semi-urban and rural parts of the country where
entrepreneurs, officials, students, etc have the need to surf the Internet for
various purposes. Though the laptop penetration in these areas has not made a
significant mark, desktop penetration is comparatively more. All players are
competing with each other to give affordable tariff rates for their data cards.
But still the rates are very high when compared to countries like the UK. In the
UK, wireless broadband connection through 3G technology costs
about £10 per month and that too with a data download speed faster than 256
Kbps. International travelers who have used data cards with faster speed are not
satisfied with data cards and USB modems services offered in India. So, in India, 48
data cards mean accessing a bare minimum net connectivity only for a sizable
population. That is why it is said that data cards have not exactly taken off in India.

Research Design

73
The research design followed to obtain the research objective is Descriptive
Research Design. The above research design is selected to describe the
competition in the telecom industry for USB data cards.

Tools for Research

Questionnaire:

The objective of the questionnaire is to find the current internet usage pattern
of the respondents – the internet service provider, the purpose of usage and the
type of modem connection.

Another objective to find the respondent awareness on the USB internet data
cards in the market, their preference on companies for internet service and the
amount they are willing to pay for the three types of modem connection-
broadband, USB data cards and dial-up modem.

The theoretical population: All people aged 15-60 in Kerala who use and
have access to the internet.

Sampling Technique: Simple Random sampling

Sampling Frame: Company own operated outlets, cyber cafe, institutions are
places where the respondents were interviewed.

Sample Size: 55.

Method of Data Collection: Primary data collection through survey method

using a pre-determined questionnaire.

Tools for Analysis and Interpretation: SPSS 7.5

74
Data Collection

Data collection of tariff plans of the competitors in the USB data card market.

Reliance

• 150 kbps maximum speed

• Mostly used by business peoples

75
 • Need cd for installation
• Pre- paid to post paid conversion not possible
• Roaming charges apply
• New broad band speed USB available ony in Ernakulam & Trivandrum
• Price Rs.2490/-

Prepaid Plans

Recharge 5Hrs 10Hrs 25Hrs Unlimited

Voucher Internet Internet Internet Internet
Pack Pack Pack Pack
MRP 111 202 404 1099
(Inclusive
Tax)
Validity 0 0 30 30
(Days)
Free Local 50 100 300 300
SMS
Usage Time 300Minutes 600Minutes 1500Minutes Unlimited
(6 am to 10
pm)
Usage Time 600 Minutes 1200Minutes 3000Minutes Unlimited
(10pm to 6
am)
Table 4A

Post paid Plans

Plan Monthly Hours / Additional Free Sms
Rental months Data
Peak Off Peak
usage
(6 am – 10 (10 pm - 6
Rate
pm) am)
Swift 30 300 15 hours 30 Hours 50 Paisa/ 300/

76
 Minute Month
Local
Swift 40 400 40 Hours 40 Hours 50 ps/Min 200/
Month
Local
Freedom at 400 50 Paisa / Unlimitted N.A Nil
Night Minute
RC 650 1 GB Rs 2/ MB 100/
freedom Month
Local
Plan 1099 1099 Unlimited N.A 100/
Month
Local
Table 4B
Rs 350/- Discount for 12 Months on Rs 1099 Unlimitted Plan
Rs 100/- Discount for 12 Months on 1 GB usage plan

Tata Indicom

• CDMA technology
• Claims having best speed and coverage
• Mostly used by students
• Roaming charges do not apply
• Rs 2769/- Post Paid USB Price
• Rs 2249/- Pre paid USB Price
• Separate USB purchase required for Pre-paid and Post-paid Plan
• No brochure available for the Pre-paid. Information provided only at the
outlets
• Pre Paid to Post Paid Conversion not possible.
• Best data usage initial plan(RS 2769 offers 2 months of unlimited
surfing it also includes 1GB inbuilt Memory)

77
Post-paid Plan

Plan name Highlights Fixed Free Usage Additional

Charges usage
Time based Plan
Budget 150 Lowest Rs 160/ 300 Minutes 50 Paisa/
Rental Month (5 Hrs) Minute
Value 325 Free 1 Hr/ Rs 325/ 1800 Minutes 8 AM-12 AM
Day Month (30 Hrs) 50 P / Min
12 Am- 8 AM
25 P/ Min
Value 525 Free 2 Hr/ Rs 525/ 3600 Minutes 8 AM-12 AM
Day Month (60 Hrs) 50 P / Min
12 Am- 8 AM
25 P/ Min
Data Based Plan
Me Unlimited Unlimited RS 799/ Unlimitted NA
Usage Month
Me Economy Always on Rs 0.5 GB Rs 2/MB
500/Month
Me Jumbo For heavy Rs 1GB Rs2/MB
users 650/Month
Table 4C
Pre-Paid Plan
Plan No. of months Usage
Rs 224 1 month 750 mins
Rs 349 1 month 1200 mins
Rs 449 1 month 1750 mins
Table 4D
BSNL

Coverage only in 3 District of Kerala. Kotayyam, Pathanamthitta, Ernakulam

Initial Cost is High
No pre paid plan

78
NIC Card Outright Purchase

Activation charges Rs.250/-

I.C Card Price Rs.2800/-
VAT (4%) Rs112/-
Fixed Monthly Charges Rs.250/-
Service Tax (12.36%) Rs.62/-
Total Rs.3474/-
Table 4E
NIC Card Rental Basis

Activation charges Rs.250/-

I.C Card F.M Charges Rs.150/
Security Deposit Rs.1000/-
Fixed Monthly Charges Rs.250/-
Service Tax (12.36%) Rs.80/-
Total Rs.1730/
Table 4F

Vodafone

• Only Post Paid Plans available

• Data card not yet available in mini stores or small towns stores of kerala
• Is easy to install – just plug in and you are ready, no CDs required.

Price of USB: Rs. 2699/-

Plans:

Monthly rental of Rs. 699/-(1 GB Free Data and 5 paise/ 10KB)

Monthly rental of Rs. 899/-(Unlimited usage)
Table 4G
Airtel

79
 • Still in the process installing EDGE technology in small town.
• Datacard only available in cities like Trivandrum, Kottayam,
Ernakulam.
• Initial investment too high but attractive long term offers
• Free Data Card Offers attractive

Offers

Offer-1

Buy a Data Card and get 1 Month’s Rental Free

Data Card Rs 2999

Rental Rs 599 per month
Product Details Free 1 GB downloads every month
and Rs 3 per MB download there on
Special Offer First month rental free
Table 4H
Offer-2

Free Data Card with One Year Advance Rental

80
Data Card Free
Rental Rs 6600 per annum(Advance rental)
Product Details Free 1 GB download every month and
Rs 3 per MB download there on
Special Offer Rental: Rs 599 X 12 months = Rs
7188
Cost of Data Card: Rs. 2999
Total: Rs 10187
You pay Rs 6600 only!
Table 4I
Offer-3

One India Unlimited Plan

Data Card Rs 2999

Rental Rs 999 per month
Product Details Unlimited usage
Special Offer Can be used across India. No roaming
charges applicable
Table 4J

Offer-4

Free Data Card with 6 Months Advance Rental for One India Unlimited Plan

Data Card Free

Rental Rs 5994 (Advance Rental)
Product Details Unlimited Internet Usage
Special Offer Rs 999 X 6 months= Rs 5994
Cost of Data Card: Rs 2999
Total: Rs 8993
You Pay Rs 7500 only
Table 4K

81
IDEA
USB Price: Rs.2490/-
Pre-Paid Plan
Net Setter MRP Equivalent Validity Data Usage
Plans Data Usage Tariff
Net 299 Rs. 299 299 MB 30 days 2ps/KB
Net 399 Rs. 399 399 MB 60 days 2ps/KB
Net Rs.500 Unlimited 30 days NIL
Unlimited
Table 4L
Post-Paid Plan

Net Setter MRP Equivalent Data Usage

Plans Data Usage Tariff
Net 299 Rs. 299 299 MB 2ps/KB
Net 399 Rs. 399 399 MB 2ps/KB
Net Rs.500 Unlimited NIL
Unlimited
Table 4M
Unlimited plan of Rs.500 for the first 3 months and then it becomes Rs.899.

Questionnaire:

The questionnaire consisted of both open-ended and closed ended questions.

Sample Size: 55

Sampling Technique:

Simple Random sampling through survey method.

82
Limitations of Study

• Due to limited time the results obtained from the research study may be
biased and may not depict the true picture.

• The research study was limited to a particular region in Kerala, i.e.,

Kottayam.

• Incomplete questionnaires or questionnaires which were not fully or

properly answered was difficult to interpret and may show bias on part
of the researcher and hence were discarded.

83
 CHAPTER-5
DATA ANALYSIS AND INTERPRETATION

84
INTRODUCTION

The analysis and interpretation in this chapter have been based on the
information collected from the competitors on their tariff plans as well as
information collected through the questionnaire. The software tool that has
been used for analysis and interpretation is SPSS 7.5.

The tables and charts that have been generated in this chapter are based on the
questionnaire prepared for the study. The questionnaire tries to find out the
usage pattern of the internet among respondents, their current internet service
provider, whether they use a pre-paid or a post-paid internet connection, their
satisfaction level with current service and finally the respondent preferences on
the type of modem connection would want, the amount they are willing to
spend for the modem connection, whether they would want a pre-paid or post-
paid service.

The purpose and inference of each table and the corresponding graph has been
provided depending on the closed ended questions included in the
questionnaire.

85
Purpose: To identify the different age groups of people using the internet.

Table 1: Analysis of age groups

Valid Cumulative
Frequency Percent Percent Percent
Valid 15-20 4 7.3 7.3 7.3
20-25 26 47.3 47.3 54.5
25-30 11 20.0 20.0 74.5
30-35 6 10.9 10.9 85.5
35-40 3 5.5 5.5 90.9
40-45 4 7.3 7.3 98.2
50-55 1 1.8 1.8 100.0
Total 55 100.0 100.0
Total 55 100.0

86
 Chart No.1
30

20

10
Frequency

0
15-20 20-25 25-30 30-35 35-40 40-45 50-55

age

Most of the respondents in the survey (47.3%) belong to the age group of 20-25
who are working professionals and students.

Purpose: To distinguish between the male and female users of the internet.

Table 2: Analysis of the number of male and female respondents

Valid Cumulative
Frequency Percent Percent Percent
Valid male 38 69.1 69.1 69.1
female 17 30.9 30.9 100.0
Total 55 100.0 100.0
Total 55 100.0

87
 Chart No.2
40

30

20
Frequency

10

0
male female

gender

Most of the respondents were male.

Purpose: To identify how often the respondents use internet, i.e., daily,
weekly or monthly.

Table 3: Analysis of how often do respondents use the internet

Valid Cumulative
Frequency Percent Percent Percent
Valid daily 36 65.5 65.5 65.5
once in 2
13 23.6 23.6 89.1
or 5 days
a week 4 7.3 7.3 96.4
fortnight 2 3.6 3.6 100.0
Total 55 100.0 100.0
Total 55 100.0

88
 Chart No.3
40

30

20
Frequency

10

0
daily oncein2or 5days aweek fortnight

howoftenrespondents usetheinternet

65.5% of the respondents use internet daily.

Purpose: To identify for how much amount of time the respondents browse the
internet.

Table 4: Analysis of time of internet usage by respondents

Valid Cumulative
Frequency Percent Percent Percent
Valid half an
7 12.7 12.7 12.7
hour
1 hour 21 38.2 38.2 50.9
2 hours 9 16.4 16.4 67.3
more than
17 30.9 30.9 98.2
2 hours
44.00 1 1.8 1.8 100.0
Total 55 100.0 100.0
Total 55 100.0

89
 Chart No.4
30

20
Frequency

10

0
half anhour 2hours 44.00
1hour morethan2hours

timeof internet usage

38.2% of the respondents use the internet for at least 1hour while 30.9% of the
respondents use the internet for 2 hours whenever they have access to the
internet.

Purpose: To identify at which time of the day (morning, afternoon, evening or

midnight) do the respondents use the internet.

90
Table 5: Analysis of the time of the day when internet is used most by the
respondents

Valid Cumulative
Frequency Percent Percent Percent
Valid 6am-11am 1 1.8 1.8 1.8
11am-4pm 15 27.3 27.3 29.1
4pm-7pm 10 18.2 18.2 47.3
7pm-11pm 17 30.9 30.9 78.2
11pm-5am 5 9.1 9.1 87.3
11am-7pm 2 3.6 3.6 90.9
6am-11pm 2 3.6 3.6 94.5
6am-4pm 1 1.8 1.8 96.4
7pm-5am 1 1.8 1.8 98.2
4pm-5am 1 1.8 1.8 100.0
Total 55 100.0 100.0
Total 55 100.0

Chart No.5
20

10
Frequency

0
6am-11am 4pm-7pm 11pm-5am 6am-11pm 7pm-5am
11am-4pm 7pm-11pm 11am-7pm 6am-4pm 4pm-5am

time of the day when internet is used most

30.9% of the respondents use the internet between 7pm and 11pm at home or in
the internet café while 27.3% of the respondents use the internet while in
office/college.
Purpose: To identify whether the respondents use the internet while they are
on the move or while traveling.

91
 Table 6: Analysis of whether respondents use the internet while
travelling

Valid Cumulative
Frequency Percent Percent Percent
Valid yes 8 14.5 14.5 14.5
no 46 83.6 83.6 98.2
nil 1 1.8 1.8 100.0
Total 55 100.0 100.0
Total 55 100.0

Chart No.6
50

40

30

20
Frequency

10

0
yes no nil

dorespondents useinternet whiletravelling

83.3% of the respondents don’t use the internet while they are traveling.

Purpose: To understand what the respondents expect from an internet

connection while they are on the move, i.e., to have uninterrupted connectivity
or good speed while they are connected to the internet or both.

92
 Table 7: Analysis of what the respondent expects froman internet
connection- speed in connection or uninterrupted connectivity or both

Valid Cumulative
Frequency Percent Percent Percent
Valid uninterrupted
16 29.1 29.1 29.1
connectivity
speedy
23 41.8 41.8 70.9
connection
both 16 29.1 29.1 100.0
Total 55 100.0 100.0
Total 55 100.0

Chart No.7
30

20
Frequency

10

0
uninterruptedconnec both
speedyconnection

respondents expectation fromthe connection while traveling

41.8% of the respondents want good modem speed when they have access to
the internet while 29.1 % of the respondents want both good modem speed as
well as uninterrupted connectivity(no breakdown of internet connection) when
they have access to the internet.

Purpose: To identify where the respondents have access to the internet, i.e., at
home or office or internet café.

93
Table 8: Analysis as to where the respondents have access to the internet

Valid Cumulative
Frequency Percent Percent Percent
Valid home 18 32.7 32.7 32.7
internet cafe 9 16.4 16.4 49.1
college/office 6 10.9 10.9 60.0
all of the above 17 30.9 30.9 90.9
home &
3 5.5 5.5 96.4
college/home
internet cafe
& 2 3.6 3.6 100.0
College/Office
Total 55 100.0 100.0
Total 55 100.0

Chart No.8
20

10
Frequency

0
home college/office home&college/home
internet cafe all of theabove internet cafe&Coll

Respondentshaveinternet accessat

32.7% of the respondents have access to the internet at home while 30.9% of
the respondents use access to the internet at home, office/college and internet
café.

Purpose: To identify for what purpose do the respondents use the internet, i.e.,
for personal or office use.

94
 Table 9: Analysis of purpose of usage of current internet connection

Valid Cumulative
Frequency Percent Percent Percent
Valid personal 21 38.2 38.2 38.2
home/family 11 20.0 20.0 58.2
office 14 25.5 25.5 83.6
public 4 7.3 7.3 90.9
option a & b 2 3.6 3.6 94.5
option b & c 1 1.8 1.8 96.4
all of the
2 3.6 3.6 100.0
above
Total 55 100.0 100.0
Total 55 100.0

Bar Chart
30

20
Frequency

10

0
personal office optiona&b all of theabove
home/family public optionb&c

purposeof usageof current internet connection

38.2% of the respondents use the internet for personal use to check mails as
well as visit social networking sites while 25% of the respondents use internet
while they are at work which again pertains receiving/replying business mails
as part of their job being professionals.

Purpose: To identify the type of internet connections the respondents have

access to, i.e., broadband or dial up or USB data cards or a combination of

95
these and also to find the awareness level of USB data cards among
respondents.

Table 10: Analysis of the type of modemconnection the respondents

have access to currently

Valid Cumulative
Frequency Percent Percent Percent
Valid dial-up 12 21.8 21.8 21.8
broadband 32 58.2 58.2 80.0
USB data
6 10.9 10.9 90.9
cards
usb &
5 9.1 9.1 100.0
broadband
Total 55 100.0 100.0
Total 55 100.0

Chart No.10
40

30

20
Frequency

10

0
dial-up USBdatacards
broadband usb&broadband

Respondentscurrent typeof modemconnection

58.2% of the respondents use broadband modem for getting access to the
internet at home or internet café. 21.8% of the respondents have use dial-up
modem while only 10.9% use USB modem to get connected to the internet.

Purpose: To identify the time taken for the respondent to get an internet
connection after having provided an application to the service provider.
96
 Table 11: Analysis on how quickly the respondent is able to get an
internet application after putting in an application to the service
provider

Valid Cumulative
Frequency Percent Percent Percent
Valid within a
13 23.6 23.6 23.6
day
less than
19 34.5 34.5 58.2
a week
within a
23 41.8 41.8 100.0
month
Total 55 100.0 100.0
Total 55 100.0

Chart No.11
30

20

10
Frequency

0
withinaday lessthanaweek withinamonth

41.8% of the respondents could get an internet connection from the internet
service provider within a month after they put in an application for the same
while only 23.6% of the respondents could get an internet connection within a
day after putting an application to the internet service provider.
Purpose: To identify whether the respondents are satisfied with their current
internet connection and modem speed.
97
Table 12: Analysis of whether the respondents are satisfied with the
current modemspeed

Valid Cumulative
Frequency Percent Percent Percent
Valid yes 39 70.9 70.9 70.9
no 16 29.1 29.1 100.0
Total 55 100.0 100.0
Total 55 100.0

Chart No.12
50

40

30

20
Frequency

10

0
yes no

70.9% of the respondents are satisfied with the modem speed which is mostly
broadband connection modem.

Purpose: To identify the current internet service provider of the respondents

and assess the competition for Idea netsetter.

98
 Table 13: Analysis of the current internet service provider of
respondents

Valid Cumulative
Frequency Percent Percent Percent
Valid Idea 3 5.5 5.5 5.5
bsnl 37 67.3 67.3 72.7
airtel 3 5.5 5.5 78.2
reliance 4 7.3 7.3 85.5
tata
1 1.8 1.8 87.3
indicom
more than
one 5 9.1 9.1 96.4
company
others 2 3.6 3.6 100.0
Total 55 100.0 100.0
Total 55 100.0

Chart No.13
40

30

20
Frequency

10

0
Idea airtel tataindicom others
bsnl reliance morethanonecompan

67.3% of the respondents use bsnl’s broadband modem connection while only a
negligible number of respondents use Idea’s internet service.

Purpose: To identify whether respondents are using post-paid or pre-paid

services for internet.

99
 Table 14: Analysis of whther the respondents current internet
connection post paid or pre paid

Valid Cumulative
Frequency Percent Percent Percent
Valid yes 37 67.3 67.3 67.3
no 18 32.7 32.7 100.0
Total 55 100.0 100.0
Total 55 100.0

Chart No. 14
40

30

20
Frequency

10

0
yes no

Respondentscurrent internet connectionpost paid

67.3% of the respondent use Post-Paid internet connection.

Purpose: To understand whether the respondents would like to have a new

internet connection for home if they have an option while having a current
connection.

100
Table 15: Analysis of wheter the respondents would you like to have
an internet connection for home

Valid Cumulative
Frequency Percent Percent Percent
Valid yes 30 54.5 54.5 54.5
no 24 43.6 43.6 98.2
5.00 1 1.8 1.8 100.0
Total 55 100.0 100.0
Total 55 100.0

Chart No.15
40

30

20
Frequency

10

0
yes no 5.00

would respondents like to have an internet connection for home

54.5% of the respondents would prefer to have an internet connection at home.

Purpose: To understand which type of modem connection the respondents

prefers for an internet connection and also to understand the mind set of the
respondents towards USB data cards.

101
Table 16: Analysis of the type of modemrespondents would you ideally
prefer

Valid Cumulative
Frequency Percent Percent Percent
Valid dial-up 2 3.6 3.6 3.6
broadband 42 76.4 76.4 80.0
USB
11 20.0 20.0 100.0
datacard
Total 55 100.0 100.0
Total 55 100.0

Chart No.16
50

40

30

20
Frequency

10

0
dial-up broadband USBdatacard

whichtypeof modemrespondentswouldideallyprefer

76.4% of the respondents would prefer to use a broadband modem for internet
connection while 20% would prefer to use a USB modem while only 3.6%
would prefer a dial-up modem for internet connection.

Purpose: To understand the respondent preference on pre-paid or post-paid

services for internet.

102
Table 17: Analysis of the type of internet service respondents ideally
prefer

Valid Cumulative
Frequency Percent Percent Percent
Valid pre-paid 29 52.7 52.7 52.7
post-paid 26 47.3 47.3 100.0
Total 55 100.0 100.0
Total 55 100.0

Chart No.17
30

20
Frequency

10

0
pre-paid post-paid

typeof internet serviceideally preferred

52.7% of the respondents would ideally prefer a Pre-Paid internet connection as

they feel it they would charged only according to usage and moreover it is a
sensible to spend money for internet connection at their convenience while
those who prefer Post-Paid connection feel they would have unlimited internet
connection and don’t have to worry about getting cut from the connection.

Purpose: To understand respondent preference on Airtel as their internet

service provider.

103
 Table 18: Analysis of respondents order of preference for airtel as
their internet service provider

Valid Cumulative
Frequency Percent Percent Percent
Valid first rank 1 1.8 1.8 1.8
second
18 32.7 32.7 34.5
rank
third rank 10 18.2 18.2 52.7
fourth rank 5 9.1 9.1 61.8
fifth rank 6 10.9 10.9 72.7
sixth rank 1 1.8 1.8 74.5
nil 14 25.5 25.5 100.0
Total 55 100.0 100.0
Total 55 100.0

Chart No.18
20

10
Frequency

0
first rank third rank fifth rank nil
second rank fourth rank sixth rank

order of preference for airtel

32.7% of the respondents have second preference for Airtel as their internet
service provider.

Purpose: To understand respondent preference on BSNL as their internet

service provider.

104
 Table 19: Analysis of order of preference for bsnl as their internet
service provider

Valid Cumulative
Frequency Percent Percent Percent
Valid first rank 47 85.5 85.5 85.5
second
2 3.6 3.6 89.1
rank
third rank 1 1.8 1.8 90.9
fourth rank 2 3.6 3.6 94.5
nil 3 5.5 5.5 100.0
Total 55 100.0 100.0
Total 55 100.0

Chart No.19
50

40

30

20
Frequency

10

0
first rank secondrank thirdrank fourthrank nil

order of preferencefor bsnl

85.5% of the respondents would give first preference to BSNL as their internet
service provider.

Purpose: To understand respondent preference on Idea as their internet service

provider.

105
Table 20: Analysis of respondents order of preference for Idea as their
internet service provider

Valid Cumulative
Frequency Percent Percent Percent
Valid first rank 2 3.6 3.6 3.6
second
9 16.4 16.4 20.0
rank
third rank 12 21.8 21.8 41.8
fourth rank 7 12.7 12.7 54.5
fifth rank 5 9.1 9.1 63.6
sixth rank 5 9.1 9.1 72.7
nil 15 27.3 27.3 100.0
Total 55 100.0 100.0
Total 55 100.0

Chart No.20
16

14

12

10

8
Frequency

0
first rank thirdrank fifthrank nil
secondrank fourthrank sixthrank

order of preferencefor idea

21.8% of the respondents have given third preference to Idea as their internet
service provider.

Purpose: To understand respondent preference on Others (like Asianet) as

their internet service provider.

106
Table 21: Analysis of respondents order of preference for others as an
internet service provider

Valid Cumulative
Frequency Percent Percent Percent
Valid second
3 5.5 5.5 5.5
rank
nil 52 94.5 94.5 100.0
Total 55 100.0 100.0
Total 55 100.0

Chart No.21
60

50

40

30
Frequency

20

10

0
secondrank nil

order of preferencefor others

5.5% of respondents the respondents have given second preference to Asianet

Broadband as their internet service provider.

Purpose: To understand respondent preference on Reliance as their internet

service provider.

107
Table 22: Analysis of respondents order of preference for reliance as
their internet service provider

Valid Cumulative
Frequency Percent Percent Percent
Valid first rank 5 9.1 9.1 9.1
second
9 16.4 16.4 25.5
rank
third rank 11 20.0 20.0 45.5
fourth rank 9 16.4 16.4 61.8
fifth rank 4 7.3 7.3 69.1
sixth rank 5 9.1 9.1 78.2
nil 12 21.8 21.8 100.0
Total 55 100.0 100.0
Total 55 100.0

Chart No.22
14

12

10

6
Frequency

0
first rank third rank fifth rank nil
second rank fourth rank sixth rank

order of preference for reliance

20% of the respondents have given third preference to Reliance as their internet
service provider.

Purpose: To understand respondent preference on Tata Teleservices as their

internet service provider.

108
Table 23: Analysis if respondents order of preference for tata as their
internet service provider

Valid Cumulative
Frequency Percent Percent Percent
Valid second
2 3.6 3.6 3.6
rank
third rank 7 12.7 12.7 16.4
fourth rank 11 20.0 20.0 36.4
fifth rank 12 21.8 21.8 58.2
sixth rank 8 14.5 14.5 72.7
nil 15 27.3 27.3 100.0
Total 55 100.0 100.0
Total 55 100.0

Chart No.23
16

14

12

10

6
Frequency

0
secondrank thirdrank fourthrank fifthrank sixthrank nil

order of preferencefor tata

21.8% of the respondents have given fifth preference to Tata as their internet
service provider.

Purpose: To understand respondent preference on Vodafone as their internet

service provider.

109
Table 24: Analysis of order of preference for vodafone as their internet
service provider

Valid Cumulative
Frequency Percent Percent Percent
Valid second
1 1.8 1.8 1.8
rank
third rank 1 1.8 1.8 3.6
fourth rank 3 5.5 5.5 9.1
fifth rank 11 20.0 20.0 29.1
sixth rank 21 38.2 38.2 67.3
nil 18 32.7 32.7 100.0
Total 55 100.0 100.0
Total 55 100.0

Chart No.24
30

20
Frequency

10

0
secondrank thirdrank fourthrank fifthrank sixthrank nil

order of preferencefor vodafone

38.2% of the respondents have given sixth preference to Vodafone as their

internet service provider.

Purpose: To understand respondent preference on broadband modem for

internet connection.

110
Table 25: Analysis of respondents order of preference for broadband
modem

Valid Cumulative
Frequency Percent Percent Percent
Valid first rank 41 74.5 74.5 74.5
second
12 21.8 21.8 96.4
rank
nil 2 3.6 3.6 100.0
Total 55 100.0 100.0
Total 55 100.0

Chart No.25
50

40

30

20
Frequency

10

0
first rank second rank nil

order of preference for broadband modem

74.5% if the respondents have given first preference to broadband modem for
internet connection.

Purpose: To understand respondent preference on Dial-up modem for internet

connection.

111
Table 26: Analysis of respondents order of preference of dial up modem

Valid Cumulative
Frequency Percent Percent Percent
Valid second
2 3.6 3.6 3.6
rank
third rank 43 78.2 78.2 81.8
nil 10 18.2 18.2 100.0
Total 55 100.0 100.0
Total 55 100.0

Chart No.26
50

40

30

20
Frequency

10

0
secondrank third rank nil

order of preference of dial up modem

78.2% of the respondents have given last preference to dial-up modem.

Purpose: To understand respondent preference on USB modem for internet

connection.

112
Table 27: Analysis of respondents order of preference for USB modem

Valid Cumulative
Frequency Percent Percent Percent
Valid first rank 14 25.5 25.5 25.5
second
31 56.4 56.4 81.8
rank
third rank 2 3.6 3.6 85.5
nil 8 14.5 14.5 100.0
Total 55 100.0 100.0
Total 55 100.0

Chart No.27
40

30

20
Frequency

10

0
first rank secondrank thirdrank nil

order of preference for USB modem

25.5% of the respondents have given first preference to USB modem for
internet connection while 56.4% of the respondents have given second
preference to USB modem for internet connection.
Purpose: To understand respondent preference on internet technology like
broadband, CDMA, GSM etc. and also to find the awareness of respondents on
the type of internet technology.

113
Table 28: Analysis of respondents view on which is a better technology
for internet connection

Valid Cumulative
Frequency Percent Percent Percent
Valid GSM 8 14.5 14.5 14.5
CDMA 3 5.5 5.5 20.0
Broadband 43 78.2 78.2 98.2
CDMA &
1 1.8 1.8 100.0
Broadband
Total 55 100.0 100.0
Total 55 100.0

Chart No.28
50

40

30

20
Frequency

10

0
GSM CDMA Broadband CDMA&Broadband

whichis abetter technology for internet connection

78.2% of the respondents feel that broadband technology is best for internet
usage.

Purpose: To understand how much the respondent is willing to pay every

month for a broadband modem connection for the internet.

114
table 29: Analysis of how much the respondent willing to spend for
broadband modeminternet connection

Valid Cumulative
Frequency Percent Percent Percent
Valid 100-200 7 12.7 12.7 12.7
200-400 28 50.9 50.9 63.6
500-1000 20 36.4 36.4 100.0
Total 55 100.0 100.0
Total 55 100.0

Chart No.29
30

20

10
Frequency

0
100-200 200-400 500-1000

willingness to spend for broadband modem internet connection

50.9% of the respondents are willing to spend between Rs.200-400 for a

broadband modem connection in a month and 36.4% of the respondents are
willing to spend between Rs.500-1000 for the same.

Purpose: To understand how much the respondent is willing to pay every

month for a Dial-up modem connection for the internet.

115
Table 30: Analysis of how much the respondent is willing to spend for
dial up modeminternet connection

Valid Cumulative
Frequency Percent Percent Percent
Valid 100-200 26 47.3 47.3 47.3
200-400 22 40.0 40.0 87.3
500-1000 7 12.7 12.7 100.0
Total 55 100.0 100.0
Total 55 100.0

Chart No.30
30

20

10
Frequency

0
100-200 200-400 500-1000

willingness to spend for dial up modem internet connection

40% of the respondents are willing to spend between Rs.200-400 for a dial-up
modem in month while 47.3% respondents are willing to spend between
Rs.100-200 for the same.

Purpose: To understand how much the respondent is willing to pay every

month for a USB modem connection for the internet.

116
Table 31: Analysis of howmuch the respondent is willing to spend for
USBmodeminternet connection

Valid Cumulative
Frequency Percent Percent Percent
Valid 100-200 8 14.5 14.5 14.5
200-400 36 65.5 65.5 80.0
500-1000 11 20.0 20.0 100.0
Total 55 100.0 100.0
Total 55 100.0

Chart No.31
40

30

20
Frequency

10

0
100-200 200-400 500-1000

willingness to spend for USB modem internet connection

65.5% of the respondents are willing to spend between Rs.200-400 for a USB
modem connection in a month.

Purpose: To understand the preference towards Pre-paid or Post-paid

connections among different age groups in the survey.

117
 Table32: Analysisof ageandtypeof internet service
ideallypreferred- prepaidorpost paidbyrespondents

Count
typeof internet service
ideallypreferred
pre-paid post-paid Total
age 15-20 3 1 4
20-25 18 8 26
25-30 4 7 11
30-35 2 4 6
35-40 3 3
40-45 1 3 4
50-55 1 1
Total 29 26 55

Chart No.32
20

10

typeof service
Count

pre-paid

0 post-paid
15-20 20-25 25-30 30-35 35-40 40-45 50-55

age

Respondents belonging to the age group of 15-25 years preferred Pre-paid

connections while from the age group of 25 and above preferred Post-paid
connections
Purpose: To understand the preference towards the type of connection among
different age groups in the survey.

118
 Table 33: Analysis of relationship between age and the type of
modemthat would be ideally preferred by respondents

Count
which type of modem would you
ideally prefer
USB
dial-up broadband datacard Total
age 15-20 1 3 4
20-25 19 7 26
25-30 7 4 11
30-35 6 6
35-40 3 3
40-45 1 3 4
50-55 1 1
Total 2 42 11 55

Chart No.33

20

10

type of modem

dial-up
Count

broadband

0 USBdatacard
15-20 20-25 25-30 30-35 35-40 40-45 50-55

age

The respondents within the age group of 20-30 years have shown a preference
towards USB datacards for their modem connection.
Purpose: To understand how much the respondents are willing to spend on
USB data card modem connection.

119
Table 34: Analysis of relationship between age and willingness of
the respondents to spend for USB modeminternet connection

Count
willingness to spend for USB
modem internet connection
100-200 200-400 500-1000 Total
age 15-20 1 3 4
20-25 5 17 4 26
25-30 2 6 3 11
30-35 5 1 6
35-40 3 3
40-45 1 3 4
50-55 1 1
Total 8 36 11 55

Chart No.34

20

10

willingness tospend

100-200
Count

200-400

0 500-1000
15-20 25-30 35-40 50-55
20-25 30-35 40-45

age

Most of respondents among different age groups are willing to spend between
Rs. 200-400 for USB modem connection.

120
 CHAPTER-6
FINDINGS, SUGGESTIONS AND CONCLUSION

Comparison of Tariff Plans of USB Data Cards

121
Idea has an edge over its competitors in kerala in terms of its subscriber base
which around 43 million. Idea Cellular Ltd can use this advantage for its latest
offering in the internet service segment- USB data card Idea Netsetter.

Advantages of Idea over its competitor in the Data Card segment

Idea has placed the cheapest price for USB modem at Rs.2490/-. Idea has
reasonable tariff plans compared to its competitors. USB device is a plug n play
device and does not require a separate software installation from a CD. It uses
GSM technology with EDGE (Enhanced Data Global Evolution). Best
Network coverage in Kerala. Largest subscriber base in Kerala. Attractive
launch plan for Idea NetSetter. Has both Pre-Paid and Post-Paid plans.

Threats From Idea’s Competitors

Idea has threat from Company’s like Tata Indicom whose tariff plans are
attractive with the additional advantage of no roaming charges being applied
for its USB data cards

Airtel’s long term tariff plans are attractive and is a threat to Idea’s short-term
plans.

BSNL is an established player as an internet service provider with its famous

broadband services. It has launched it EVDO data card which uses CDMA
technology and claims to have broadband speed. This is again a threat to Idea
as most of the respondents in the questionnaire gave preference to BSNL as
their internet service provider.

FINDINGS

122
Data cards are latest products be in the offering by telecom players for internet
services with its USB data cards. The respondents are not fully aware of the
benefits of this product. It would require aggressive marketing strategy by the
telecom companies to sell its latest offering.

Consumers are aware of the product and have given second preference to USB
modem for internet usage.

Most of the respondents use internet for atleast two hours and they use it to
check mails, visit social networking sites and for office or college use. This
usage pattern can be easily fulfilled using USB data cards.

Most of the respondents prefer to have a Pre-Paid services for internet usage
which is again an option in the USB data cards.

Most of the respondents are willing to spend between Rs.200-400 in a month

which again can be fulfill the needs of the consumer through USB data cards.

It is possible to get internet connection within a day of application for an USB

data card.

USB data card has the biggest advantage of wireless internet connectivity.

All the above points can be used to leverage the sales of USB data cards.

SUGGESTIONS

Idea Cellular Ltd can use penetrating pricing strategy to capture the market-
pricing the new product very low in terms of tariff plans and leverage its
position as the leading telecom service provider in Kerala to capture the market
with its new USB modem.

123
Pursue an aggressive marketing strategy for the sale of its USB internet
modem- Idea Netsetter by highlighting the advantages of its product over its
competitors as well as other type of modem connections. It has highlight the
advantages its GSM technology as well its network coverage through out
Kerala as well as wireless connectivity and activation of the connection on the
same day as application of the same is submitted. Marketing strategy should
concentrate on more media ads as well as print ads of the product targeting the
age group of 20-40 years which include professionals and students

The company has to give the perception of not only being a good telecom
service provider and also approach aggressively to establish itself as a good
internet service provider. Most of the respondents have given a third preference
to Idea as their internet service provider. It means the positioning of Idea as an
internet service provider is not the same as its other services. Therefore it to use
various marketing techniques- print and media advertisements to position itself
as a good internet service provider.

The company also has to break the perception of broadband being the best
technology for internet usage.

The company should target the age group of 20-40 years who would show an
interest in USB datacard.

The company should device Pre-paid and Post-paid plans that are around the
Rs.200-400.

SWOT ANALYSIS

Strengths:

124
Top private telecom service provider in Kerala. Highest subscriber base in
Kerala- around 43 million subscribers. GSM (Global system for mobile
communication) service provider. Various products and services available from
telephony, internet services to value added services.

Weakness:

Lack of consumer awareness of various plans, products and services being

offered by the telecom service provider. Wrong consumer perception of Post-
Paid services, that is, the consumer feels that the company is charges more than
usage of this service. Economic slow down had affected the sales. Perception
of customers regarding the post paid connection. Good offers provided by the
competing networks. Problem regarding the clarity and signal coverage of idea
network. Lack of advertisement regarding post paid connection and
schemes.Some of the catching offers were withdrawn by Idea.

Opportunities:

The company can consolidate on the existing subscriber base by providing

attractive products and services at affordable prices to the consumer. Use the
existing goodwill of the company to add a new subscriber base that would avail
the company’s products and services.

Threats:

The company has a threat from the strong and existing players in the market
who with their plans, products and services can take away the company’s
subscriber base. Expanding telecom market with the entry of new players and
their plans in the market.

CONCLUSION

125
Idea Cellular Ltd. is the leading private telecom service provider in Kerala. The
organization study was carried out at zonal office in Kottayam. The study was
intended to understand the various functions of each and every department at
the zonal level and how each department work together towards the
achievement of organizational goals. The organization follows a vertical
structure that there is vertical reporting happening as well as downward
communication of decisions and policies. The interesting feature of the
organizational structure is dual reporting by the department heads. The
department heads have to report to the zonal head (Zonal Business Manager)
and the corresponding head in the regional office in Ernakulam.

The research topic was to carry out a competitor analysis of USB data cards
which is the latest offering by telecom players in Kerala. USB data cards
provide wireless internet connectivity. The research helped understand
consumer perception on USB data cards and also consumer preferences on
companies for internet, their preferences on modem type and the current
internet usage pattern.

126
 BIBLIOGRAPHY

Kothari, C.R., Research Methodology Methods & Techniques, New Delhi:

Vishwa Prakashan, 2002.

127
Kotler, Philip, Marketing Management, New Delhi: Pearson Education
Inc,2003.

www.ideacellular.com

"Kerala Connections: Will the Internet Affect Science in Developing Areas?"

Davidson, Theresa, R. Sooryamoorthy, and W. Shrum. The Internet in
Everyday Life. Barry Wellman and Caroline Haythornthwaite (eds.).
Blackwell. 2002

Dey, Pradipto, A Summer Training Report On Consumer Buying Behaviour

With A Focus On Perception Towards Internet Data Card In Reliance
Communication Ltd, 2008.
http://www.scribd.com/doc/12778357/Consumer-Behaviour-towards-
Telecom-Products

128
 APPENDIX

Questionnaire

Name: ___________________________________

129
 Address:
_______________________________________________________________
________________________________________________________
_______
Age: ___________________
Tick appropriate options
1. How often do you use the internet?
a) Daily b) Once in 2 or 5 Days
c) A week d) Fortnight (15 Days)

2. For what time period do you use the internet?

a) Half an hour b) 1 Hour
c) 2 Hour d) More than 2 Hours

3. At what time of the day do you use the internet the most?
a) Morning (6am- 11am) b) Afternoon (11am-4pm)
c) Evening (4pm-7pm) d) Night (7pm-11pm)
e) Midnights (11pm- 5am)

4. Do you use the internet while you are traveling with a laptop?
a) Yes b) No

5. While traveling what are you looking for in your internet connection?
a) Uninterrupted connectivity b) Speedy connection

6. Where do you have access to internet?

a) Home b) Internet cafe
c) College/Office e) All of the above

7. Current internet connection that you have access to is for

a) Personal b) Home/ Family

130
 c) Office use d) Public use (Internet Café)

8. For what purpose do you use the internet

a) Check mails b) Social networking sites(orkut,
facebook etc)
c) Messenger/chatting d) Entertainment (Downloading games,
movies, music etc)
e) Only two or three uses f) Career (job searches etc)
from the above options,
Specify below g) Others, Specify below
_______________________________________________________________
_______________________________________________________________
_______________________________________________________________
_______________________________________________________________

9. What type of modem connection is used by the computer from which you
access the internet?
a) Dial up Modem b) Broadband
c) USB Datacards d) Others (Specify)
_______________________________________________________________
_______________________________________________________________
_______________________________________________________________

10. How easily can you get an internet connection at your place?(After how
many days can you get internet connection after giving an application to the
operator)
a)Within 1 Day b)Less than 1 week c)Within 1 Month

11. Are you satisfied with the modem speed or internet connectivity speed at
the place where you have access to the internet?
a) Yes b) No

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Reason for satisfaction or dissatisfaction
_______________________________________________________________
_______________________________________________________________
_______________________________________________________________
_______________________________________________________________
_______________________________________________________________

12. Which company is providing you with internet service where you have
access to the internet?
a)Idea b)BSNL c)Airtel d) Reliance
e)Vodafone f)Tata Indicom g)More than one Company,
Specify
h) Others specify below below
_______________________________________________________________
_______________________________________________________________
_______________________________________________________________

13. Is your internet connection Post-Paid/ Money being charged after usage?
a) Yes b) No

14. Do you think you are being charged more than usage? Specify the reason
for that
_______________________________________________________________
_______________________________________________________________
_______________________________________________________________

15. Which company do you think is providing the best offer for internet usage,
specify the offer if you can.
_______________________________________________________________
_______________________________________________________________
_______________________________________________________________

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 16. Would you like to have an internet connection for your home Desktop/
Laptop?
a) Yes b) No

17. What type of modem / connection speed would you ideally prefer? Why?
a) Dial up b) Broadband c) USB Data Card d) Others (Specify)
______________________________________________________________
_______________________________________________________________
_______________________________________________________________
_______________________________________________________________
_

18. What type of internet service would you ideally prefer? Why?
a) Pre Paid b) Post Paid
_______________________________________________________________
_______________________________________________________________
_______________________________________________________________

19. Rank in the order of preference if you are opting for a company providing you
with internet service with the most preferred coming first.
Idea, BSNL, Airtel, Reliance, Vodafone, Tata Indicom
1)
2)
3)
4)
5)

20. Rank in the order of preference the type of modem connection that you
would like to have with the most preferred coming first.

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 USB Modem, Dial up, Broadband
1)
2)
3)

21. Which technology do you think better for internet usage?

a) GSM (Global System for Mobile) b) CDMA (Code Division
Multiple Access) c) Broadband

22. How much are you willing to spend in a month for an internet connection?
Please specify the amount for each type of modem that you are willing to pay
for each.
a) 100-200 b) 200-400 c) 500-1000
USB Modem _________________________________
Broadband _________________________________
Dialup _________________________________

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