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A PROJECT REPORT ON MOBILE TELE SYSTEMS

M T

S

Badlo life ka plan

By- DEVENDRA KUMAR PANDEY MBA – MARKETING & FINANCE

PREFACE
There is some purpose behind any work irrespective of the size of the work. This report is not an exception; the purpose of preparing this report is just to collect the information about a new launching service that is MTS and to observe the every activity of the company minutely. Having a vision of going into the service industry, I am preparing this report as a help for me. It takes a great effort in launching any product or service in the market and it takes the greatest one when you are going to lunch the same in a very competitive environment where there is cut throat competition irrespective of the company is a brand in other part of the globe. I appreciate the event of the launching the service and also appreciate the founder members to take such a great risk. This report is all about how to launch the product or service in the market and with the appropriate strategy to acquire the customer. I am greateful to the time & GOD to give me the privilege to examine the new launching service. Ending the preface by these lines : EVERYTHING VISIBLE IS NOT EVERYTHING WE HAVE TO GO BEYOND AND SEE THE HIDDEN, UNFORESEEN, UNSPECIFIED ANDUNSEEN PORTION WHERE LIES THE ACTUAL STRENGTH.

WHEN U MINE FOR AN OUNCE OF GOLD, U HAVE TO GO FOR MUD; BUT WHEN U

GO FOR MINING, U DON’T GO FOR MUD BUT IN SEARCH OF

GOLD..

ABOUT THE ORGANISATION Mobile TeleSystems OJSC (MTS) is the largest mobile phone operator in Russia and the CIS. MTS services over 95.03 million subscribers (as of June 30, 2009). MTS provides mobile communications in Russia, Ukraine, Uzbekistan, Turkmenistan, Armenia and Belarus , a territory with a total population of more than 230 million. MTS has been listed on the New York Stock Exchange since July 2000 and trades under the ticker MBT. The company’s shares have been listed locally on Moscow Interbank Currency Exchange (MICEX) since November 2003 under the symbol MTSI. The free float of the company’s shares is approximately 46.7%. MTS is 52.8% majority-owned by Sistema, the largest private sector consumer services company in Russia and the CIS. In 2008, MTS' revenues grew 24% to $10.2 billion. According to Informa Telecoms & Media's World Cellular Information Service, MTS ranks as the 8th largest operator in the world by proportionate subscriptions at the end of 2008. MTS Brand : MTS launched its current brand in 2006, building on the reputation as the leader and highest quality operator in the region. The brand was developed to attract customers in a variety of cultural, socio-geographic and income segments with the consistent message of quality and leadership. To facilitate further growth and recognition of the brand, MTS recently adopted new Brand Standards to communicate the brand consistently in all messaging and launched a new slogan “Operator Svyazi”(telecommunication services' provider) to reinforce its perception as a strong, trustworthy and quality-focused company. JOINT VENTURE :In December 2008, MTS extended its brand outside the CIS borders. Sistema Shyam TeleServices Ltd, a joint venture between Sistema (LSE-SSA) of Russia and

Shyam Group of India, brought the MTS brand into India under a brand license agreement with Mobile TeleSystems (MTS) OJSC (NYSE: MBT) of Russia. The agreement with MTS does not include participation of SSTL, for launching MTS products, operations or services in India. The strength of the MTS brand was recognized internationally in 2008, when it became the first and only Russian company to enter BRANDZ™ Top 100 Most Powerful Brands, a ranking published by the Financial Times and Millward Brown, a leading global market research and consulting firm. The MTS position in the global Top 100 Brand list was reinforced when in 2009 MTS joined the ranks of the most powerful brands in the world, for the second year in a row. The latest rankings from Millward Brown Optimor (including data from Brandz, Datamonitor and Bloomberg), feature the upward movement of the MTS brand by 18 spots to become the 71st most powerful brand globally with a value of $9.2 billion, up from $8.1 billion in 2008.

Currently the MTS brand operates in India in the circles of Rajasthan, Tamil Nadu, Kerala, Kolkata, West Bengal and Bihar and offers mobile telephony services to its subscribers in these regions.

ABOUT SYSTEMA SYAM TELESERVICES Sistema Shyam TeleServices (SSTL) is a joint venture company between Sistema {LSE-SSA} of Russia and Shyam Group of India. Sistema is the majority share holder in this joint venture with a 73.71% equity stake, along with the Shyam Group, holding a 23.79% stake and the rest 2.5% being public partake. SSTL has spectrum to provide mobile telephony services in all the 22 circles across the country. Presently SSTL offers mobile telephony services in the Rajasthan, Tamil Nadu, Kerala, West Bengal, Bihar as well as the Kolkata circles. In a recent development, SSTL tied up with Mobile TeleSystems OJSC of Russia to bring the globally acclaimed telecom brand-MTS-to India. MTS is the 8th largest telecom brand in the world and has recently been voted as the 71st ranked brand out of 100 top global brands in the world by Millward Brown.
HIGH LIGHTS :

• • • •

Shyam Telelink becomes Sistema Shyam TeleServices. Shyam Telelink brings globally renowned brand MTS to India. Shyam Telelink Ltd assigned LAA-(SO) rating by ICRA for its Rs.4.8 billion term loan programme. V.P. Evtushenkov, Chairman of Sistema and Head of Russian CEO’s council came to India for the first meeting of the Indo-Russia CEO’s council in New Delhi on the 5th of December 2008. Shyam Telelink is the first telecom operator to acquire the fastest 100,000 customers in the state of Rajasthan. Shyam Telelink begins phased launch of pan-India Operations. SSTL's brand MTS reaches subscriber base of one million. SSTL achieves fast-track growth in the last three months. SSTL expands from Rajasthan to Tamil Nadu, Kerala, Kolkata, West Bengal and Bihar & Jharkhand covering 13% of the country's population.

• • • • •

H R VISION

At Sistema Shyam TeleServices Limited we are steadily moving towards being amongst the best employers. With a blend of best practices from our global promoter Sistema and Indian counterpart Shyam, the company is focused on building a transparent, performance oriented culture. Our employees are our greatest asset and we are totally committed to their development. Employees undergo extensive training on both functional & behavioral competencies. The training programs not only ensure that all of our employees are equipped with the requisite role competencies, but also focus on developing new competencies to facilitate overall career growth and personality development. The training budgets at Sistema Shyam TeleServices Limited are significantly higher than the available benchmarks. We believe that, in addition to hiring the best talent, the diversity of perspectives, ideas, and cultures leads to the creation of better products and services. This diversity of our employees and Shareholders serves as the foundation for us to better serve our customers and stakeholders all over India.

BOARD OF DIRECTORS Director & Chaireman of the board

Mr. Ron Sommer Director and dy Chaireman of the board

Mr. Seregy Cheremin Director

Mr. Alok Tandon Director

Mr. Rajiv Mehrotra Director

Mr. Ajay Khanna

Director

Mr. Mikhail Shamolin Director

Mr. Suman Sehgal Director

Mr. Madhukar Whole time Director designated as President and CEO

Mr. Vsevolod Rozanov

MANAGEMENT

President & Chief Executive Officer

Mr. Vsevolod Rozanov

Dy.Chief Executive Officer

Mr. Raymond Armes

Dy.Chief Executive Officer

Mr T.Narasimhan

INVESTORS

Ownership of Sistema Shyam TeleServices Limited

Sistema Shyam TeleServices Limited Equity Structure Sistema (LSE : SSA) – 73.71% Shyam Group – 23.79% Public – 2.5%

SHAREHOLDERS SYSTEMA :
Sistema is the largest public diversified corporation in Russia and the CIS, which manages fast growing companies operating in the telecommunications, consumer services sectors and technology industries and has over 100 million customers. Sistema develops and manages market-leading businesses in selected industries, including telecommunications, technology, banking, real estate, retail, media, tourism and healthcare. Founded in 1993, the company reported revenues of US$ 12.6 billion for the first nine months of 2008 (unaudited), and total assets of US$ 32.0 billion as at September 30, 2008 (unaudited). Sistema’s shares are listed under the symbol “SSA” on the London Stock Exchange, under the symbol “AFKS” on the Russian Trading System (RTS), under the symbol “AFKC” on the Moscow Interbank Currency Exchange (MICEX), and under the symbol “SIST” on the Moscow Stock Exchange (MSE).

SYAM TELECOM :
Shyam Telecom provides wireless coverage solutions (enabling reliable mobile communication for GSM, CDMA, iDEN®, UMTS, TETRA™, and Public Safety) for various entrenched and evolving technologies globally and infrastructure that enables reliable and affordable wireless communication. Shyam Telecom designs and manufactures innovative coverage solutions for mobile operators, real-estate developers, neutral-host providers, businesses, and residence, designing solutions which seamlessly integrate with macro-networks of the mobile operators.

M CARD OF MTS
MCardGet 10,00,000 minutes free for life!

MCard (10,00,000 min) for Rs.499 only 150 min/day local on-net 10 bonus SMS/day to all networks Lifelong Validity (until 24-1-2028) Limited edition offer. Till stocks last. Note: 1. Offer valid in Kolkata, West Bengal, Bihar and Delhi only. 2. All rates are at 60 second pulse unless mentioned otherwise. 3. Lifetime condition: Minimum of Rs.200 top-up over a period of 6 months till 24th Jan 2028.

How to get your MCard Bring your phone to the nearest MTS retailer to make sure that it works on our network. If your phone is compatible, buy your MTS Sim Card for just Rs. 99 plus MCard for just Rs. 499. And you are ready to go If your phone is not compatible , you can choose from a range of latest colour handsets starting at just Rs. 999.

VALUE ADDED SERVICES

Value Added Services (VAS) Messaging - SMS (Short Messaging Service) - Short Code SMS Services Callertunes : Dial 55777 to enjoy the song categories given below: - Song of the Day - Regional Language songs - Artist Special Songs - Hindi Songs - English Songs - Other Languages MTS Voice Portal Dial 55555 and enjoy : - Movie Reviews - Latest Songs / Artist Specials / Devotional Songs - Love Tips - Jokes - Astrology MTS Info – UTK Services : - Voice Services - Cricket - Astrology - Devotional

- Jokes - News - Railway Enquiry - Utilities Railway Enquiry Dial 139 for: - PNR Status - Train Timings & Schedules - Seat Availability - Train Fare - Online Booking - Current Train Status Roaming Now stay connected with your loved ones. With MTS you can roam anywhere in India with very affordable Call/ SMS tariffs. Call Services - CALL WAITING - CALL FORWARDING - CALL HOLD - CALL CONFERENCE

*Services may vary from circle to circle

FROM BUSINESS STANDARD “After cutting mobile telephony tariffs 50 percent over the past five months, telecom operators are getting ready to slash rates another 25 percent in the next two or three months as new competitors crowd into the market. About five new operators are ready to start operations by the end of this year, adding to over 8 incumbents slugging it out to grab a share in a mobile market that is expected to grow to 750 million subscribers by 2012 against over 450 million at present. Last month , Tata Teleservices announced a one paisa per second offer for its newly launched GSM services followed by a 50 paisa per minute offer by Reliance Communications for both its CDMA as well as GSM services, making it the first incumbent operator to join the price war. Today , new operator Sistema Shyam Teleservices, which launched under the MTS brand name in delhi, has prepared a business plan predicted on more cuts. As a part of the Delhi launch plan, MTS is offering 2 seconds talk time for 1 paisa or effectively 30 paisa a minute for outgoing calls. However in addition one has to pay re 1 a day for this offer. “We will see blood bath in telecom tariffs. They have already fallen by half from an average of 70 paisa a minute to around 30 paisa a minute for local calls. We expect them to fall by another 20 percent,” said CEO Vsevold Rozanov. Systema Shyam, in which Russia’s Systema owns a majority stake with the shyam group of delhi, has launched services in seven circles since last year. MTS is also working out a plan to take on Rcom’s roaming offer by reducing its existing Re 1 per minute, though no details were available. A senior executive of Datacom, the joint venture group of Videocon and Mahendra Nahata, that is also expected to launch soon, sees a similar trend. “With many of the new players about to start operations we expect tariffs to fall another 20 to 25 percent ,” he said. Analyst like Mahesh Uppal predict that prices might fall by another 10 percent or so and then stabilize. Few incumbents, however, are expected to follow the newcomers’example, saying such cuts were inevitable but also unsustainable. “Customers have become price agnostic as they are so low already. What matters are the brand, coverage and quality. We expect the new players will make loss,” says a senior executive of Bharti Airtel, Indias largest telecom company. Analysts, however, say incumbents are in a better position to fight the tariff battle.” SURJEET DAS GUPTA New Delhi, 8th october