Professional Documents
Culture Documents
Vodafone - Edited1
Vodafone - Edited1
Page 1
Introduction
The Indian Telecommunications network with 110.01 million connections is the fifth largest in the world and the second largest among the emerging economies of Asia. Today, it is the fastest growing market in the world and represents unique opportunities for U.S. companies in the stagnant global scenario. The total subscriber base, which has grown by 60% in 2008, is expected to reach 450 million in 2009.According to Broadband Policy 2004, Government of India aims at 9 million broadband connections and 18 million internet connections by 2009. The wireless subscriber base has jumped from 33.69 million in 2004 to 82.57 million in FY2008-2009. In the last 3 years, two out of every three new telephone subscribers were wireless subscribers. Consequently, wireless now accounts for 54.6% of the total telephone subscriber base, as compared to only 40% in 2007. Wireless subscriber growth is expected to bypass 3.5 million new subscribers per month by 2009. The wireless technologies currently in use are Global System for Mobile Communications (GSM) and Code Division Multiple Access (CDMA). There are primarily 9 GSM and 5 CDMA operators providing mobile services in 19 telecom circles and 4 metro cities, covering 2000 towns across the country.
Major Players
There are three types of players in telecom services: -State owned companies (BSNL and MTNL) -Private Indian owned companies (Reliance Infocomm, Tata Teleservices,) -Foreign invested companies (Hutchison-Essar, Bharti Tele-Ventures, Escotel, Idea Cellular, BPL Mobile, Spice Communications)
BSNL
Surana college pg centre, Bangalore Page 2
BHARTI
Established in 1985, Bharti has been a pioneering force in the telecom sector with many firsts and innovations to its credit, ranging from being the first mobile service in Delhi, first private basic telephone service provider in the country, first Indian company to provide comprehensive telecom services outside India in Seychelles and first private sector service provider to launch National Long Distance Services in India. Bharti Tele-Ventures Limited was incorporated on July 7, 1995 for promoting investments in telecommunications services. Its subsidiaries operate telecom services across India. Bhartis operations are broadly handled by two companies: the Mobility group, which handles the mobile services in 16 circles out of a total 23 circles across the country; and the Infotel group, which handles the NLD, ILD, fixed line, broadband, data, and satellite-based services. Together they have so far deployed around 23,000 km of optical fiber cables across the country, coupled with approximately 1,500 nodes, and presence in around 200 locations. The group has a total customer base of 6.45 million, of which 5.86 million are mobile and 588,000 fixed line customers, as of January 31, 2009. In mobile, Bhartis footprint extends across 15 circles. Bharti Tele-Ventures' strategic objective is to capitalize on the growth opportunities the company believes are available in the Indian telecommunications market and consolidate its position to be the leading integrated telecommunications services provider in key markets in India, with a focus on providing mobile services.
MTNL
Surana college pg centre, Bangalore Page 3
RELIANCE INFOCOMM
Reliance is a $16 billion integrated oil exploration to refinery to power and textiles conglomerate. It is also an integrated telecom service provider with licenses for mobile, fixed, domestic long distance and international services. Reliance Infocomm offers a complete range of telecom services, covering mobile and fixed line telephony including broadband, national and international long distance services, data services and a wide range of value added services and applications. Reliance India Mobile, the first of Infocomm's initiatives was launched on December 28, 2002. This marked the beginning of Reliance's vision of ushering in a digital revolution in India by becoming a major catalyst in improving quality of life and changing the face of India. Reliance Infocomm plans to extend its efforts beyond the traditional value chain to develop and deploy telecom solutions for India's farmers, businesses, hospitals, government and public sector organizations. Until recently, Reliance was Permitted to provide only limited mobility services through its basic services license. However, it has now acquired a unified access license for 18 circles that permits it to provide the full range of mobile Services. It has rolled out its CDMA mobile network and enrolled more than 6 million subscribers in one year to become the countrys largest mobile operator. It now wants to increase its market share and has recently launched pre-paid services. Having captured the voice market, it intends to attack the broadband market. Surana college pg centre, Bangalore Page 4
TATA TELESERVICES
Tata Teleservices is a part of the $12 billion Tata Group, which has 93 companies, over 200,000 employees and more than 2.3 million shareholders. Tata Teleservices provides basic (fixed line services), using CDMA technology in six circles: Maharashtra (including Mumbai), New Delhi, Andhra Pradesh, Tamil Nadu, Gujarat, and Karnataka. It has over 800,000 subscribers. It has now migrated to unified access licenses, by paying a Rs. 5.45 billion ($120 million) fee, which enables it to provide fully mobile services as well. The company is also expanding its footprint, and has paid Rs. 4.17 billion ($90 million) to Dot for 11 new licenses under the IUC (interconnect usage charges) regime. The new licenses, coupled with six circles in which it already operates, virtually gives the CDMA mobile operator a national footprint that is almost on par with BSNL and Reliance Infocomm. The company hopes to start off services in these 11 new circles by August 2008. These circles include Bihar, Haryana, Himachal Pradesh, Kerala, Kolkata, Orissa, Punjab, Rajasthan, Uttar Pradesh (East) & west and west Bengal.
VSNL
On April 1, 1986, the Videsh Sanchar Nigam Limited (VSNL) - a wholly Government owned corporation - was born as successor to OCS. The company operates a network of earth stations, switches, submarine cable systems, and value added service nodes to provide a range of basic and value added services and has a dedicated work force of about 2000 employees. VSNL's main gateway centers are located at Mumbai, New Delhi, Kolkata and Chennai. The international telecommunication circuits are derived via Intelsat and Inmarsat satellites and wide band submarine cable systems e.g. FLAG, SEA-ME-THEY-2 and SEA-ME-THEY-3. The company's ADRs are listed On the New York Stock Exchange and its shares are listed on major Stock Exchanges in India. The Indian Government owns approximately 26 per cent equity, M/s Panatone Finevest Limited as Investing vehicle of Tata Group owns 45 per cent equity and the overseas holding (inclusive of FIIs, ADRs, and Foreign Banks) is approximately 13 per cent and the rest is owned by Indian institutions and the public. The company provides international and Internet services as well as a host of value-added services. Its revenues have declined from Rs. 80.89 billion ($2.62 billion) in 2008-09 to Rs. 68.12 billion ($2.1 billion) in 2008-09, with voice revenues being the mainstay. To reverse the falling revenue trend, VSNL has also started offering
Page 5
Vodafone
Hutch now Vodafones presence in India dates back to late 1992, when they worked with local partners to establish a company licensed to provide mobile telecommunications services in Mumbai. Commercial operations began in November 1995. Between 2000 and March 2004, Hutch acquired further operator equity interests or operating licenses. With the completion of the acquisition of BPL Mobile Cellular Limited in January 2006, it now provides mobile services in 16 of the 23 defined license areas across the country. Hutch India has benefited from rapid and profitable growth in recent years. It had over 20.5 million customers by the end of June 2009.
IDEA
Indian regional operator IDEA Cellular Ltd. has a new ownership structure and grand designs to become a national player, but in doing so is likely to become a thorn in the side of Reliance Communications Ltd. IDEA operates in eight telecom circles, or regions, in western India, and has received additional GSM licenses to expand its network into three circles in Eastern India -- the first phase of a major expansion plan that it intends to fund through an IPO, according to parent company Aditya Birla Group .
Mergers
Demand for new spectrum as the industry grows and the fact the spectrum allocation in done on the basis of number of subscribers will force companies to merge so as to claim large number of subscribers to gain more spectrum as a precursor to the launch of larger and expanded services. However it must also be noted that this may very well never happen on account of low telecom penetration.
Constraints:
1. Slow pace of the reform process.
2. It would be difficult to make in-roads into the semi-rural and rural areas because of the lack of
infrastructure. The service providers have to incur a huge initial fixed cost to make inroads into this market. Achieving break-even under these circumstances may prove to be difficult.
3. The sector requires players with huge financial resources due to the above mentioned constraint. Upfront
entry fees and bank guarantees represent a sizeable share of initial investments. While the criterias are important, it tends to support the existing big and older players.
Page 7
Page 8
COMPANY PROFILE
Vodafone was formed in 1984 as a subsidiary of Racal Electronics Plc. Then known as Racal Telecom Limited, approximately 20% of the company's capital was offered to the public in October 1988. It was fully demerged from Racal Electronics Plc and became an independent company in September 1991, at which time it changed its name to Vodafone Group Plc.Following its merger with Air Touch Communications, Inc. (Air Touch), the company changed its name to Vodafone Air Touch Plc on 29 June 1999 and, following approval by the shareholders in General Meeting, reverted to its former name, Vodafone Group Plc, on 28 July 2000.
Page 9
The executive directors are Vittorio Colao (Chief Executive) and Andy Halford.
Board Members
1. John Buchanan - Deputy Chairman 2. Andy Halford - Chief Financial Officer 3. Alan Jebson 4. Nick Land 5. Anne Lauvergeon 6. Simon Murray 7. Luc Vandevelde 8. Tony Watson 9. Philip Yea
Company review
Mobile is always at the heart of what the company do, but now the company are moving into integrated mobile and PC communication services. The company are doing that in two ways wirelessly Surana college pg centre, Bangalore Page 10
Page 11
Page 12
There have been several significant advances during the 2008 financial year including: next generation technology field trials have been announced with Verizon Wireless and China Mobile and are expected to begin in summer 2008; a system has been designed and standardized to enable the SIM in GSM phones to control near field communications for transport ticketing and other applications, with commercial trials planned for late 2008; demonstration of mobile software, social networks and the open source innovation platform called Vodafone Beta vine at the Mobile World Congress and at Cebit; and Research into the application of mobile communications to health and well being and to energy use.
The R&D programme provides the Group with long term technical policy, strategy and leadership, as well as providing technical underpinning for the Groups public policies and government relations. It is shared with all Group functions and Vodafone operating companies. Commercialization of Group R&D results is through submissions to international standards bodies, intellectual property filings and directly with Vodafone operating companies.
Collaborative work
Much of the work of Group R&D is done in collaboration with others, both within the Group and externally, with the Groups traditional suppliers and increasingly with other companies in the communications, media and internet industries. During the 2008 financial year the following has been achieved: Surana college pg centre, Bangalore Page 13
INVESTMENT PLANS The planned $2 bn capex in the next two years announced by Vodafone, following the acquisition, may not bring in good results if they want to gain significant market share as its rivals-Bharti and Reliance have decided to increase their capex during the fiscal 2007 itself. Reliance may plough in $2.5 bn in fiscal 2007-08, while around $2.5 bn could be the investment from Bharti Airtel. Vodafones target to achieve 20-25% market share by 2010-11 and market penetration of more than 40% may be realistic. The operational plan focuses on the following objectives: Expanding distribution and network coverage, lowering the total cost of network ownership, growing market share, driving a customer focused approach, etc.started
Page 14
Company Overview
2007 December
A consortium led by Vodafone Group is awarded the second mobile phone license in Qatar Indus Towers Limited; an independent tower company in India is formed between Vodafone, Idea and Vodafone
October
Vodafone agrees to acquire Tele2 Italia Spa and Tele2 Telecommunication Services SLU from Tele2 AB Group
May
Vodafone announces completion of the acquisition of Hutch Essar from Hutchison Telecommunications International Limited Vodafone launches first ultra-low cost handsets
February
Safaricom, Vodafone's partner in Kenya announces the launch of M-PESA, an innovative new mobile payment solution that enables customers to complete simple financial transactions by mobile phone. Vodafone agrees to buy a controlling interest in Hutchison Essar Limited, a leading operator in the fast Surana college pg centre, Bangalore Page 15
January
Vodafone reaches 200 million customers
2008 December
Vodafone completes acquisition of additional 4.8% stake in Polkomtel
November
Vodafone to acquire an additional 15% Stake in Vodacom Group which will increase Vodafone's shareholding from 50% to 65%. Vodacom Group will be listed on the Johannesburg Stock Exchange and the remaining 35% of Vodacom Group will be demerged by Telkom to its shareholders.
October
Vodafone launches the new exclusive BlackBerry Storm Smartphone from Research in Motion
August
Completion of the acquisition of a 70 percent stake in Ghana Telecom.
July
Surana college pg centre, Bangalore Page 16
June
Vodafone and Apple(R) announce the iPhone 3G will be available in Australia, Italy, New Zealand and Portugal on July 11 and in the Czech Republic, Egypt, Greece, India, South Africa and Turkey later this year. Vodafone announces that Verizon Wireless, its affiliate in the US, has agreed to acquire Alltel Corp. for a total enterprise value of US$28.1 billion in cash and assumed debt.
May
Vodafone announces that it has agreed to acquire the 26.4% interest in Arcor that it does not already own from Deutsche Bahn AG and Deutsche Bank AG for a cash consideration of 474 million.
February
Vodafone carries out technical trials of 3G femtocells to assess how effectively the technology is able to deliver wireless high-speed data and voice services inside homes and business locations. Safaricom and Vodafone announce that M-PESA, the innovative mobile money transfer service launched in March 2007, now has 1.6 million customers.
2009 June
Completion of merger between Vodafone Australia Limited and Hutchinson 3G Australia Pty Limited.
March
Telefonica and Vodafone announce milestone Pan European collaboration to share network infrastructure in Germany, Spain, Ireland and the UK.
February
Hutchinson and Vodafone agree to merge Australian telecom operations to form a 50:50 joint venture. Surana college pg centre, Bangalore Page 17
CHAPTER 3
Surana college pg centre, Bangalore Page 18
PRODUCT PROFILE
PRODUCT PROFILE
Introduction to Vodafone products & services
Vodafone Group Plc is the world's leading mobile telecommunications company, with a significant presence in Europe, the Middle East, Africa, Asia Pacific and the United States through the Company's subsidiary undertakings, joint ventures, associated undertakings and investments. The Group's mobile subsidiaries operate under the brand name 'Vodafone'. In the United States the Group's associated undertaking operates as Verizon Wireless. During the last two financial years, the Group has also entered into arrangements with network operators in countries where the Group does not hold an equity stake. Under the terms of these Partner Network Agreements, the Group and its partner networks co-operate in the development and marketing of global services under dual brand logos. At 30 June 2009, based on the registered customers of mobile telecommunications ventures in which it had ownership interests at that date, the Group had 315 million customers, excluding paging customers, calculated Surana college pg centre, Bangalore Page 19
Product review
Mobile is always at the heart of what the company do, but now they are moving into integrated mobile and PC communication services Vodafone Essar They are doing that in two ways wirelessly through 3G and HSDPA (High-Speed Download Packet Access), but also using fixed line broadband services like DSL (Digital Subscriber Line). Their customers benefit from a complete Vodafone experience in and out of their homes and offices. They are notified about email with their consumer push email service, access existing instant messaging services on the move, and share images and video captured on their handsets. They offer a suite of products that, starting with voice calls, offers their customers an alternative to a traditional fixed telephone line. Vodafone Zuhause in Germany and Vodafone Casa in Italy, provide their customers with an easy-to-use mobile service, combined with low-cost fixed line telephony and DSL (Digital Subscriber Line) broadband. They have extended their reach into the office by delivering richer business applications and integrated fixed and mobile services, such as higher speed internet access. With developments in technology they can provide integrated mobile and PC offerings to give their customers a consistent experience whether they are at home or on the move.
Technology
Surana college pg centre, Bangalore Page 20
Mobile evolution
Their mobile communications technology has advanced rapidly since Vodafone launched the first national UK network on 1 January 1985. With this first generation (1G) technology most mobile phones theyre installed in cars, pothered by the car battery and used roof-mounted antennas to improve reception of the analogue signal. The analogue services set up in countries across Europe during the late 1980s theyre often not compatible, with subscribers unable to use the same mobile phone moving from one country to the next. To solve this and other problems a new standard known as the Global System for Mobile Communications (GSM) was developed. This standard used digital technology, converting speech into binary code. Since Vodafone launched the first digital network in 1991, GSM has become the main standard for mobile communications worldwide. Second generation (2G) digital technology added the ability to transmit data along with voice over mobile networks and was the origin of internet access on the move. Wireless Application Protocol (WAP), a standard for internet-based services accessible on small mobile phone screens, provided early information services like Surana college pg centre, Bangalore Page 21
Services
1. Voice 2. Data 3. Devices 4. Fixed and other services
Voice
Voice services are the largest part of their business. They offer their customers a wide range of innovative tariffs and services for use at home, in the office and while travelling.
Internet on their Mobile offers easy to use and secure browsing, including Google search, an unlimited browsing tariff and access to some of the most popular online services. You can use their mobile to access and update their social networking profiles, view and upload YouTube videos, buy and sell items on eBay, and check locations on Google Maps. You can also chat to friends easily with Yahoo! and MSN instant messaging using an easy to use dedicated interface. Using the new Vodafone live! Mobile and PC music player you can search for music, artist pages and previews from a catalogue of more than 750,000 songs. Music from some of the worlds greatest artists is available, with music secured from agreements with major record labels such as Sony BMG Music Entertainment, EMI, Universal Music, Warner Music, as theyll as independent music labels. Mobile TV offers an average of 20 channels from both local and international broadcasters. Vodafone has local Surana college pg centre, Bangalore Page 23
Vodafone Mobile Connect enables you to access the internet on their laptop or PC via Vodafone Mobile Connect data cards or Vodafone Mobile Connect USB modems. Business customers can access services such as email, corporate applications and company intranets using the service.
Page 24
Secure remote access a service enabling customers employees to access their network through their
laptop, on the move, both while in their home country and when roaming
Applications many software programs have been developed for use on mobile devices and they can
integrate these into their customers mobile portfolios. For example, workforces can have up to date sales information available at any time anywhere and schedules can be updated centrally and in real time.
Vodafone handyphone
Introducing the landline thats loaded with all the features of a cell phone - including low call rates. And Vodafone Handyphone isnt that expensive either. You can make one yours for as little as Rs 1999. Key features: Calls to any 3 Vodafone numbers @ 20p / min Calls to all local mobile phones @ 40p / min Free local & STD calls every month
Business handsets
They are always expanding their range of business handsets. Their exclusive devices include the Palm Treo 500v and the BlackBerry Curve 8310 Smartphone. Both offer business email combined with Vodafone live! Services, such as Google Maps, internet browsing and instant messaging. In addition, the BlackBerry 8100 series and the BlackBerry 8110 series continue to be in demand along with the Nokia E series range.
Page 26
Page 27
Page 28
48
New and existing customers
101
New and existing customers
149
New and existing customers
47
New customers
99
New customers
146
New customers
147
New customers
Daily rental Initial talk time Sim card validity Tariff validity
VodafonetoVodafone Vodafone Other Mobile Vodafone - Landline Local SMS
0 5
0 0
0 75
1 5
1 0
0 75
2years
1 75
2years
2years
2years
0.50
30p/min
30p/min
0.50
30p/min
1.00
0.50
0.50
0.50
0.50
0.60
0.60
1.00
0.60
1.00
1.00
1.00 0.10
1.00
1.00 Send 2 local SMS @ Re 1/sms and get 100 local SMS free for the day
1.00
1.00
0.25
1.00
1.00
1.00
Page 29
Page 30
The following are the departments which come under the review of the managing director
FINANCE DEPARTMENT
Department head: sabarish gupta Finance manager Assistant finance manager Chief analyst Finance executives
Page 32
Page 33
Page 34
The Human Resources (HR) Department compensation supervisor co-chairs this task force with a non-HR employee. The associate vice president of HR serves on this task force. Vodafone also has committees in which members are appointed for a limited time period to review issues or concerns and to make specific recommendations to a task force or council. The senior coordinator of staff development is a member of the recently formed Companywide Professional Development Committee. This committee is charged with the following responsibilities: Developing and recommending companywide professional development administrative rules and procedures to the Academic and Company Affairs Council and the Administrative Services Council; Recommending professional development activities and needed resources based on input from task forces and companywide committees; Developing and recommending guidelines of good practices for the design and delivery of professional development activities;
Page 36
IMPLEMENTATION STRATEGIES
1. The associate vice president of HR and HR supervisors review the company comprehensive master plan and companywide strategic planning process. 2. The associate vice president of HR and HR supervisors draft strategic goals and communicate the goals to internal staff. 3. The HR supervisors solicit input from employees in developing tactical plans to support the strategic goals. 4. The associate vice president of HR and HR supervisors refine and document the goals, tactical plans and implementation timelines. 5. The associate vice president of HR and HR supervisors implement the plan, continuously monitor and report progress in Vodafone ordinance with the company's strategic planning process.
HR personnel
The HR Department has too many supervisory-level positions, creating separate sections for similar functions. There are 31 positions in the department, of which eight are supervisory positions, including the associate vice president of HR. Seven of these positions and a senior administrative assistant report to the associate vice Surana college pg centre, Bangalore Page 37
IMPLEMENTATION STRATEGIES
1. The associate vice president of HR reorganizes the employment sections to merge staff employment into one functional area. 2. The associate vice president of HR reclassifies the employment supervisor position to a recruiter position and appoints the staff employment supervisor to oversee the new combined unit. 3. The associate vice president of HR revises the job descriptions of the affected positions. 4. The associate vice president of HR presents the reorganization plan to the president for approval.
Page 38
Performance Dialogues
All employees complete an annual Performance Dialogue with their line manager, enabling them to review their performance annually and set clear goals and development plans for the year ahead. The process ensures the company people can make a clear connection between their goals and Vodafones business objectives.
Development Boards
Vodafone employees with key skills are discussed at an annual Development Board, where their line managers rate their performance and potential. The company uses this information to identify employees with leadership potential in each local operating company. These employees are encouraged to complete leadership development training, such as Inspire.
Benefits
Each of the company local operating companies offers a competitive range of benefits for employees. The benefits packages offered are determined by local legislative and tax requirements and industry benchmarks. Depending on the location, the company offer benefits such as medical insurance, subsidized mobile phones, share plans and retirement benefits. The company All Shares plan gives everyone at Vodafone a stake in the companys success. Retirement benefits are provided through a variety of arrangements, including defined benefit and defined contribution schemes. These vary depending on the conditions and practices in the countries concerned such as local market practice, taxation, legislation and the quality of the states pension
Requirements:
Project Management skills People Management and Development Skills SAP background, knowledge of SAP Full project lifecycles Fluency in English Relevant college or university qualification
Executive Development
Vodafones approach to executive development
The company has clearly defined leadership strategy which is aligned with the company business strategy and highlights five areas of focus for the company in managing and growing the company leadership talent for the future: Robust succession and development planning Planned and managed career moves to achieve identified leadership development goals Fit for purpose development activity, tailored to individual need An open and transparent approach to talent management and leadership so that executives know where they stand, how their potential is viewed and are recognized and rewarded in line with their value to the business A dynamic process for tracking changing skills requirements and effective on boarding for incoming talent Surana college pg centre, Bangalore Page 42
Page 43
Hierarchy - Marketing.
Page 44
Hierarchy - Sales.
Page 45
Introduction
Marketing is a comparative term which includes all resources and a set of activities necessary to direct and facilitate the flow of goods from produced to customer. And the process of distribution is called sales. It is to satisfy customers demands. It is the creation and delivering the standard of living to society. The company first determines customers wants and figure how to make the delivery of the product to satisfy those wants. Human efforts, financial management are tools for marketing. Team work and market penetration are tools for sales.
Objectives
To analyze marketing opportunities Increase of sales and revenue To satisfy the customers wants as the business exists only due to existence of customer demands. To distribute the product in time. To maximize product variety and customer choice. Overcoming customer complaints. Surana college pg centre, Bangalore Page 46
2. To find who are the competitors of the Vodafone and the market shares of the competitors and what strategies Vodafone is implementing to beat its competitors. 3. To find out how Vodafone react to the technology changes in the communications sector.
SECONDARY SOURCE
Internet Newspaper Magazines Others
The Company is a part of Vodafone Enterprises, and is India's leading provider of telecommunications services. The businesses at Vodafone have been structured into three individual strategic business units (SBU's) - mobile services, broadband & telephone services (B&T) & enterprise services. The mobile services group provides GSM mobile services across India in 23 telecom circles, while the B&T business group provides broadband & telephone services in 90 cities. The Enterpri-se services group has two sub-units - carriers (long distance services) and services to corporate. All these services are provided under the Vodafone brand. Its include: 1. Voice Services Surana college pg centre, Bangalore Page 47
Voice Services
Vodafone became the first private fixed-line service provider in India. It is now promoted under the Vodafone brand. Recently, the Government opened the fixed-line industry to unlimited competition. Vodafone has subsequently started providing fixed- line services in the four circles of Delhi, Haryana, Madhya Pradesh, Karnataka, Tamil Nadu & UP (West). Vodafone Enterprise Services believes that these circles have high telecommunications potential, especially for carrying Voice & Data traffic. These circles were strategically selected so as to provide synergies with Vodafone's long distance network and Vodafone's extensive mobile network. Vodafone Enterprise Services, India's premium telecommunication service, brings to you a whole new experience in telephony. From integrated telephone services for Enterprises and small business enterprises to user-friendly plans for Broadband Internet Services (DSL), the company brings innovative, costeffective, comprehensive and multi-product solutions to cater to all your telecom and data needs.
Page 48
Satellite Services
Vodafone Enterprise Services provides you connectivity where ever you take your business The company Satellite Services bring you the benefits of access in remote locations. Vodafone Enterprise Services is a leading provider of broadband IP satellite services and DAMA/PAMA services in India. The company solutions support audio, video and voice applications on demand.
Vodafone Essar South Ltd Managed Data & Internet Services include:
1. Customized Solutions 2. International Managed Services 3. Metro Ethernet
Page 50
Now Vodafone has announced to launch the Zoozoo goodies like zoozoo toys, zoozoo mugs, zoozoo keychains, zoozoo t-shirts, etc
Page 51
Page 52
While they do not manufacture anything themselves, they maintain their responsibility to drive ethical values through the supply chain. They source equipment for their networks and the handsets they sell from third-party manufacturers which themselves source components and assembled products from other suppliers. Most of their purchasing at Group and local level is being transferred to the Vodafone Procurement Company, providing consistent contract terms for suppliers across the Group. Unlike supply chains in some other sectors, Vodafone's suppliers of telecommunications and IT equipment are mainly large multi-nationals (often well-known brands) that either operate their own assembly factories, or source from independent manufacturers, or both. They also source services from companies around the world. They strive to work with suppliers that maintain high labor and environmental standards. Their Code of Ethical Purchasing (CEP) sets out Vodafones expectations of suppliers. Their strategy is to engage directly with their first-tier suppliers and assess their compliance with the CEP. These assessments include an evaluation of their own supply chain management. Surana college pg centre, Bangalore Page 54
Supplier assessments
They assess new and existing suppliers for compliance with their Code of Ethical Purchasing.
Supplier qualification
Their supplier qualification system, used by Group and local operating companies, makes their CR expectations clear from the first point of contact a supplier has with Vodafone.
Risk assessment
They carry out risk assessments for all potential new suppliers to identify those that are high-risk and will Surana college pg centre, Bangalore Page 55
Site assessments
They use site assessments of high-risk new and existing suppliers to identify potential areas of non-compliance with their Code of Ethical Purchasing. They work with suppliers to put in place improvement plans to address the areas identified. These may include putting in place new policies or revising existing ones, as well as any necessary changes to current practices. See recommendations for improvement identified this year in their CR Report. Their supplier performance managers are also trained to identify non-compliance with their CEP, such as unsafe working practices, whenever they are on site for other visits related to quality, delivery or performance.
Scorecard evaluations
they continually monitor the performance of strategic suppliers using a scorecard in which CR accounts for 10% of the overall evaluation score. The scorecard evaluates: acceptance of their CEP management systems for employee welfare management systems for environmental management management systems for health and safety management of climate change impact management of CR in their own supply chain CR reporting activities Vodafone's supply-chain teams review the requirements and scores, and request supporting evidence from the suppliers account manager, at half-yearly intervals.
Industry partnership
They believe that a consistent approach from buyers of information and communications technology (ICT) equipment is necessary to persuade all suppliers that acceptable labor and environmental standards are essential to do business with major companies. Through their membership of the Global e-Sustainability Initiative (GeSI) Supply Chain Working Group, they are working with major companies, representing a number of different tiers within the ICT supply chain, to develop a common approach to supplier assessments through industry partnerships.
Page 59
Finance
Page 60
Finance
Basis of preparation
The Consolidated Financial Statements are prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB"). The Consolidated Financial Statements are also prepared in accordance with IFRS adopted by the European Union ("EU"), the Companies Act 1985 and Article 4 of the EU IAS Regulations. The preparation of financial statements in conformity with IFRS requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. For a discussion on the Group's critical accounting estimates see "Critical Accounting Estimates" on page 85. Actual results could differ from those estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods. Amounts in the Consolidated Financial Statements are stated in pounds sterling.
2. Business combinations
The acquisition of subsidiaries is accounted for using the purchase method. The cost of the acquisition is measured at the aggregate of the fair values, at the date of exchange, of assets given, liabilities incurred or assumed, and equity instruments issued by the Group in exchange for control of the acquire, plus any costs directly attributable to the business combination. The acquirers identifiable assets and liabilities are recognized at their fair values at the acquisition date. Goodwill arising on acquisition is recognized as an asset and initially measured at cost, being the excess of the cost of the business combination over the Group's interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognized. The interest of minority shareholders in the acquire is initially measured at the minority's proportion of the net fair value of the assets, liabilities and contingent liabilities recognized. Previously held identifiable assets, liabilities and contingent liabilities of the acquired entity are revalued to their fair value at the date of acquisition, being the date at which the Group achieves control of the acquire. The movement in fair value is taken to the asset revaluation surplus. Interests in joint ventures A joint venture is a contractual arrangement whereby the Group and other parties undertake an economic activity that is subject to joint control; that is, when the strategic financial and operating policy decisions relating to the activities require the unanimous consent of the parties sharing control. The Group reports its interests in jointly controlled entities using proportionate consolidation. The Group's share of the assets, liabilities, income, expenses and cash flows of jointly controlled entities are combined with the equivalent items in the results on a line-by-line basis. Any goodwill arising on the acquisition of the Group's interest in a jointly controlled entity is accounted for in accordance with the Group's accounting policy for goodwill arising on the acquisition of a subsidiary. Surana college pg centre, Bangalore Page 62
Page 64
SWOT ANALYSIS
STRENGTH
1. The company is Very focused on telecom. 2. It has Leadership in fast growing cellular segment. 3. The only Indian operator, other than VSNL, that has an international submarine cable. 4. Advertisement strategy of the company.
WEAKNESS
1. Low penetration Rural market Surana college pg centre, Bangalore Page 65
STRENGTH
1. VERY FOCUSED ON TELECOM : Vodafone is largely focused on the telecom, around 93% of the total revenue comes from telecom (Total telecom revenue Rs 3,326).
2. LEADERSHIP IN FAST GROWING CELLULAR SEGMENT: Vodafone is holding leadership position in cellular market. Vodafone is one of India's leading private sector providers of telecommunications services based on an aggregate of 27,239,757 customers as on August 31, 2006, consisting of 25,648,686 GSM mobile and 1,591,071 broadband & telephone customers. 3. PAN INDIA FOOTPRINT: Vodafone offers the most expansive roaming network. Letting you roam anywhere in India with its Pan-India presence, and trot across the globe with International Roaming spread in over 240 networks. The mobile services group provides GSM mobile services across India in 23 telecom circles, while the B&T business group provides broadband & telephone services in 92 cities.
WEAKNESS
PRICE COMPETITION FROM BSNL AND MTNL: Vodafone is tough competition from the
operators like BSNL and MTNL as these two operators are offering services at a low rate.
OPPORTUNITIES
THE FAST EXTENDING IPLC MARKET: An IPLC (international private leased circuit) is a
point-to-point private line used by an organization to Communicate between offices that are geographically dispersed throughout the world. An IPLC can be used for Internet access, business data exchange, video conferencing, and any other form of telecommunication. Vodafone Enterprise Services and SingTel jointly provide IPLCs on the Network i2i. The Landing Station in Singapore is managed by SingTel and by Vodafone in Chennai (India). Each Landing Station has Power Feeding Equipment, Submarine Line Terminating Equipment and SDH system to power the cable, add wavelengths and convert the STM-64 output to STM-1 data streams respectively.
LATEST TECHNOLOGY AND LOW COST ADVANTAGE: The costs of introducing cellular
services for Vodafone are marginal in nature, as it needs only to augment its cellular witch/equipment capacity and increase the number of base stations. The number of cities, towns and villages it has covered already works Surana college pg centre, Bangalore Page 67
HUGE MARKET
The cellular telephony market is presently expanding at a phenomenal / whopping __ rate every year and there is still vast scope for Vodafone to enter /expand in this market. Besides there is a vast rural Segment where the cellular services have not made much headway and many customers are looking towards Vodafone for providing the service to them. With its wide and extensive presence even in the remotest areas.
THREATS
competition from other cellular operators like bsnl,Airtel,idea.etc TRAI interference and regulation may reduce growth potential.
Page 68
Findings
Vodafone entered in broadband and fixed phone line market. Vodafone has now outsourced some of its services like customer services to IBM.
Vodafone Essar has nearly 2.2 million subscribers with a market share of 24.2%.
Vodafone has 24/7 customer service with a tag line HAPPY TO HELP YOU.
Vodafone has magic box handsets and business handset to reach their customers specification.
Vodafone advertising strategies are impressive to attract and add on more customers.
Suggestions
After the complete analysis of entire study the company put forward a set of recommendations which are as follows:
1.
PRICING
Depending on the market conditions / competition from cellular or wll-mobile service providers and also to suit local conditions, there should be flexible pricing mechanism (either at central or local ).
2.
IMPROVEMENT IN TECHNOLOGY
Vodafone should immediately shift to third generation switches by replacing its c-dot switches. This will improve the quality of service to desired level and provide simultaneous integration with the nationwide network. The special distribution of the transmission towers should be increased to avoid "no signal pockets"
Page 70
4.
Page 71
Conclusion
Page 72
Page 73
CHAPTER 8 ANNEXURES
BIBLIOGRAPHY
WWW.TRAI.GOV.IN
Surana college pg centre, Bangalore Page 74
Page 75