Chapter 1

Industry Profile

1
 Introduction to Cellular Telephony

Cellular telephony, which enables a person the power to communicate

round the clock,
across the world, has ushered in major changes in the entire industry of
telecommunications. Mobile telephones have become an integral part of
the growth,
success and efficiency of any business / economy. The most widely used
wireless
standard in the world today, is GSM. The GSM Association (Global
System for Mobile
Communications) was instituted in the year 1987 to promote and
expedite the adoption,
development and deployment and evolution of the GSM standard for
digital wireless
communications.
The GSM Association was formed as a result of a European
Community agreement on
the need to adopt common standards suitable for cross border European
mobile
communications. Starting off primarily as a European standard, the
Groupe Speciale

2
Mobile as it was then called, soon came to represent the Global System
for Mobile
Communications as it achieved the status of a world-wide standard.
GSM is today, the
world's leading digital standard accounting for 68.5% of the global
digital wireless
market. The Indian Government when considering the introduction of
cellular services
into the country, made a landmark decision to introduce the GSM
standard, bypassing
obsolescent technologies and standards.

Cellular Telephony Industry in India

It was recognized by the Government of India that the provision of a

world-class
telecommunications infrastructure and information is the key to rapid
economic and
social development of the country. It is critical not only for the
development of the
Information Technology industry, but also has widespread ramifications
on the entire

3
economy of the country. It is also anticipated that in the future years, a
major part of the
GDP of the country would be contributed by this sector. Accordingly, it
is of vital
importance to the country that there be a comprehensive and forward
looking
telecommunications policy which creates an enabling framework for
development of this
industry.

Liberalization of Indian Telecom Sector

Telecommunications sector is now universally recognized as one of the

prime movers of
the modern economy; it is especially important for a developing country
like India. The
availability of adequate infrastructure facilities is critical for acceleration
of the economic
development of any country. In fact international studies have
established that for every
1% increase in tele-density, there is a 3% increase in the growth of GDP.
Accordingly,

4
the Government of India has accorded the highest priority to investment
and development
of the telecommunications sector.

Telecom industry requires very huge levels of

investments and it was believed that the Indian Government alone would
find it difficult
to organize public funding of this sector on such a massive scale. In fact
the national
telecom Policy 1994, estimated a resource gap of Rs.23, 000 crores to
meet the telecom
targets of the eighth five-year plan of the Government of India (1992-
97).
It was for this reason to bridge the resource gap between government
funding and the
total projected funds requirement and to provide the additional resources
to achieve the
nation's telecom targets that the telecommunications sector was
liberalized in 1992 and
the Government invited private sector participation in
telecommunications.

5
 Cellular mobile services were one of the first areas to be opened
up to private competition. The whole country was divided into the 4
metropolitan cities of and 19 telecom circles, which
were roughly analogous with the States of India. In the year 1995
tenders invited for cellular services in 20 Telecom circles. The circles
were roughly
analogous to the states of India and were divided into "A", "B" and "C"
categories based
on their perceived business potential.

Category A comprised the states of Maharashtra Gujarat,

AndhraPradesh, Karnataka and
Tamil Nadu. Category B comprised the states of Kerala Punjab Haryana
Uttar Pradesh
(West) Uttar Pradesh (East) Rajasthan Madhya Pradesh and West
Bengal. Category C
comprised the states of Himachal Pradesh, Bihar, Orissa, Assam and
North East states.
Cellular Licenses were awarded to the private sector - first in the
metropolitan cities of
Delhi, Mumbai, Kolkata and Chennai in 1994 and then in the 19-telecom
circles in 1995.

6
The first metro cellular network started operating in August 1995 in
Calcutta.

When cellular mobile services were first introduced in 1994 it

was as a duopoly (that is a
maximum of two cellular mobile operators could be licensed in each
telecom circle),
under a fixed license fee regime and for a license period of 10 years. The
initial response
of the private sector was very encouraging. The attractiveness of the
Indian market - the
low tele-density, the high latent demand and a burgeoning middle class -
brought in some
of the largest global telecom players, foreign institutional investors and
the major Indian
industrial houses to invest in telecom, especially the Indian cellular
industry. Telecom
proved to be a powerful attractor of foreign investment.

Key Accounting Policies

1. Basis of Preparation of Financial Statements:

7
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

8
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 unrealised
profit or losses.
The Financial Statements of the subsidiaries used in the
consolidation are drawn upto June
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
Companys portion of equity is recognised as Goodwill or
Capital Reserve, as the case may
be.
The Consolidated Financial Statements are prepared using
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 Companys holding therein, is as under:
No. Name of the Company Voting Power % as at
9
June 30, 2008 March 31, 2008
1. Swinder Singh Satara and Co. Limited 100.00 100.00
2. Aditya Birla Telecom Limited 100.00 100.00
3. Idea Cellular Services Limited 100.00 100.00
4. Idea Cellular Infrastructure Services Limited 100.00 100.00
5. Idea Cellular Tower Infrastructure Limited 100.00 100.00
All the above subsidiaries are incorporated in India.

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 capitalised 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

10
over the remaining useful life of the asset.
4. Expenditure during pre-operative period of licence:
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 amortisation :
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
11
Leasehold improvements Period of lease
Intangible Assets :
Cost of Rights and Licences including the fees paid on fixed
basis prior to revenue share
regime is amortised 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
amortised on straight-line basis over their useful economic lives,
estimated by the
management between 3 to 5 years.
6. Licence 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 comprises
adjusted gross revenue as per
the license agreement of the license area to which the
license pertains.

12
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:

13
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:
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
14
that have been enacted or substantively enacted. Deferred tax
assets are not recognised
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.

15
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
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

16
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.

17
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 Groups 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

18
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 recognised 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 the purpose of impairment, assets
are grouped at the lowest
levels for which there are separately identifiable cash flows.
18. Provisions:
19
Provisions are recognised 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 companys
Employee Stock Option
Scheme, the intrinsic value of the option is treated as discount
and accounted as employee
compensation cost over the vesting period.

4. The Company has entered into share purchase agreement and

non compete
agreement with MCorp Global Communications Private Limited
(MCorp) on 25th June

20
2008 to acquire their entire 40.8% stake in Spice
Communications Limited (Spice) @
Rs. 77.30/- per share amounting to Rs. 21,759 Mn and paying a
non compete fee of
Rs. 5,440 Mn respectively. As of 30th June 2008, these amounts
were lying in the
respective escrow accounts.
On 30th June 2008, the Company, acting as the Acquirer
along with TMI India
Limited, TMI Mauritius Limited, TM International Berhad and
Green Acre Agro
Services Private Limited, collectively referred to as Persons
Acting in Concert have
made a Public Announcement to the other equity shareholders of
Spice
Communications Limited pursuant to and in compliance with
the applicable
provisions of SEBI (Substantial Acquisition of Shares and
Takeovers) Regulations,
1997.

21
On 7th July 2008, the 40.8% stake of MCorp has been
transferred to the Companys
escrow account and is lying as of date subject to completion of
SEBI takeover code
formalities, following which the consideration in respect of
40.8% stake in Spice has
also moved from the Companys escrow account to MCorps
escrow account.
Consequently, the non compete fee has moved from the escrow
account to MCorp.
Meanwhile, the company has also taken up with Department of
Telecommunication
(DoT), the matter of merger of Spice / licenses, the response of
which is awaited.
5. P5 Asia Holdings Investments (Mauritius) Limited, a member
of the Providence
Equity Group has signed an agreement dated 22nd May, 2008
with Aditya Birla
Telecom Limited, a subsidiary of the Company, to invest USD
640 million by way of

22
issue of compulsorily convertible preference shares of the
Aditya Birla Telecom
Limited. The proceeds as and when received will, inter alia, be
used to fund the
network rollout and for ongoing operations.
6. The Companys application to DoT for transfer of telecom
licenses held in the name
of the erstwhile subsidiaries (which stand merged with the
Company) i.e. Idea Mobile
Communications Limited, Idea Telecommunications Limited
and BTA Cellcom Limited
continues to be pending for approval. The auditors have drawn
attention to this
matter. The management confirms that the company meets the
licensing condition
laid down for transfer of licenses in case of amalgamation and
expects to receive this
procedural approval in the ensuing period.
7. Provision for Taxation for current quarter includes provision
for Deferred Tax

23
amounting to Rs. 274 Mn, provision for FBT amounting to Rs.
23 Mn and provision
for current tax, net of MAT credit, (for one of the subsidiary)
amounting to Rs. 0.1
Mn.

The cumulative FDI inflow into

telecom since 1993 has exceeded Rs. 43,000 Million. Within telecom,
the cellular
industry has attracted most of the foreign investment since 1993,
accounting for almost
50% of the FDI inflow into telecom - representing amongst the biggest
investments in
any one sector in India.

FDI in Telecom Sector

Annual foreign investment in telecom increased steadily from an

insignificant Rs. 20.6

24
Million in 1993 to Rs. 17,756.4 Million in 1998. However, the
attractiveness of the
Indian market did not last for very long, as by 1997-98; the private
cellular operators
were confronted with a series of problems that threatened their very
viability and
survival. As a result of this, Foreign Direct Investment (FDI) inflow into
telecom dropped
sharply, declining by almost 90% to Rs. 2126.7 Million in 1999. This
dropped further in
Year 2000 - as until June 2000, only Rs. 918 Million had flown into the
country. One of
the key factors responsible for the critical state of the telecom sector &
consequently also
the cellular industry was that liberalization / deregulation was
undertaken in an inverted
manner vis--vis international practices and generally accepted norms.
Usually,
deregulation is preceded by tariff rebalancing, institution of a strong and
independent
regulator and only then is private sector participation invited.

25
 Private Sector Participation in Indian
Telecommunications Sector

In India, private sector participation was invited in 1992, the Regulatory

Authority was
set up in 1997 and the tariff rebalancing exercise commenced in 1999
and is still far from
complete. Further, even when the regulatory authority was set up, there
was considerable ambiguity on its powers, which resulted in virtually
each and every order of the Authority
being challenged by the Licensor / incumbent. Another important factor
was the basic
approach of the Government towards liberalization. Consumer benefit
was not given the
due importance and the telecom sector was viewed as a revenue
generator / cash cow for
the Government exchequer. The huge license fees paid by the private
operators resulted
in a high cost structure leading to un-affordable tariffs and lower growth
of the market.

26
 New Telecom Policy of India (NTP 1999)

It was under the above circumstances that the Government undertook a

review of telecom
policy & the role of the regulatory authority. The result was NTP 99,
which was
announced in March 1999 & the amendment of the TRAI Act in January
2000. NTP 99 is
an extremely forward-looking policy. It significantly changed the
dynamics of the Indian
telecom industry as it not only replaced the high cost fixed licensing
regime with a lower
cost licensing structure through revenue sharing, but also provides for
greater degree of
competition and more flexibility in choice of technologies. The
amendments in the
Telecom Regulatory Authority of India (TRAI) Act resulted in a
considerable
strengthening of the Regulator & greater clarity on its role and powers. It
also put in
place a separate dispute settlement mechanism in the form of the
Telecom Dispute

27
Settlement and Appellate Tribunal to expeditiously deal with and resolve
issues relating
to the telecom sector.

The existing private cellular operators at that point of time

migrated to the new telecom
policy regime with effect from August 1999. The migration to a more
beneficial regime
translated into tangible consumer benefits - lower tariffs, greater
subscriber uptake and
increased coverage. Cellular tariffs have dropped by over 90% since
May 1999 - a
phenomenon unparalleled by any other sector or industry in India. The
average airtime
tariff in Year 2001 was prevailing around Rs. 2 per minute as against the
peak ceiling
tariff of Rs. 16.80 per minute when NTP 99 was announced. At the same
time, there has
also been a significant drop in the cost of mobile handsets. Cellular
handsets that were
available for around Rs. 25-30,000 in the initial days of cellular have
now dropped

28
significantly, with a base level handsets being available for as little as
Rs.2,000 upwards.

This has come about as a result of increased volumes and some degree
of rationalization
of government levies.

Growth of Mobile Telephony in India

As a result of improved affordability, there an increased take-up of the

service and the
cellular operators were able to venture into more and more cities &
towns of the country.
In fact cellular services are now available in almost 1400 cities & towns
of India. With
the lower tariffs and increased coverage, there was also a resultant
increase in the number
of cellular subscribers. The point of inflexion for subscriber take-off is
clearly post NTP-
99. From 1.2 million subscribers in April 1999, to almost 2 million by
April 2000, the
number of cellular subscribers has grown to almost 6.5 million by the
end of March 2002.

29
By March 2001, the industry had invested nearly Rs. 16,000 crores in
cellular
infrastructure and it is estimated that these investments will grow to Rs.
20,000 crores in
the next 4-5 years. The year 2001 also saw the entry of BSNL and
MTNL as the third
cellular operators as had been mandated in NTP 99. Further, in July
2001, cellular
licenses were awarded to the 4th cellular operators in different telecom
circles. With this
the number of cellular operators has gone up to 89 licenses.

As of March 2002, the Indian cellular mobile industry had 42 networks

on air, serving
over 1400 towns and cities and covering thousands of villages and
serving almost 6.5
million subscribers across the country. The quality of the service is
widely accepted to be
of international standards and till date there has been no waiting period
involved in

30
 Chapter 2
Company Profile

31
1.1 :Brief history of the company
Idea Cellular Limited

Type : Public Limited Company

BSE :532822

NSE:IDEA

Industry : Telecommunications

Founded : 1995

Headquarters: Mumba , India

Key People : Kumar Mangalam Birla [ chairman]

Products : Mobile telephony ,Wireless broadband

Revenue : 320 Billion (US $ 4.8 billion ) (2015)

Net Income: 31.92 Billion (US$ $ million ) (2015)

Members : 160.08 million ( June 2015 )

Parent : Aditya Birla Group (49.05 %)

Axiata Group Berhad (19.96 %)

Providence Equity (10.6 % )

Slogan : An idea can change your life

Website : www.ideacellular.com

32
33
 1.1.1: History of Idea Cellular Limited

Idea Cellular Limited is an Aditya Birla Group Company, Indias first truly multinational
corporation. Idea is a pan- India integrated GSM operator offering 2G & 3G services and
has its own NLD & ILD operations and ISP License. With revenue of Rs. 31,571 crore ;
revenue market share of nearly 17.5 percent ; and subscriber base of over 161 million in
financial year 2013, Idea is Indias third largest mobile operator , Idea rank among the
top 10 country operators in the world with a traffic of over 1.5 billion minutes a day.

Ideas robust pan-India coverage is built on a network of over 1,00,000 2G and 3G cell
sites, spreads across over 55,000 towns in India.

Using the latest in technology , Idea provides world class service delivery through the
most extensive network of customer touch points , comprising nearly 4,500 exclusive
Idea outlets and over 7,000 call centers seats. Ideas customer service delivery platform is
ISO 9001: 2008 certified , making it the only operator in the country to have this standard
certification for all 22 members areas and the corporate office.

Idea has consistently stayed ahead of the industry in VLR reporting. Ideas thought
leadership on Mobile Number Portability (MNP) has enabled it to stay as the top gainer
with the highest net gain. Every 4th mobile user who exercises choices though MNP,
prefers Idea.

Idea offers a range of high speed mobile broadband devices including Android based 3G
smart phones ,dongles etc. Ideas wide portfolio of 3G application and high end data
services such as Idea TV , games, social networking etc at affordable prices .

Idea has been a pioneer in introducing customized product offering for segments
customers. It is the first mobile operator to introduce innovative value added services in
India telephony market, and has remained ahead of the industry in data product offerings.

34
Idea has received several national and international recognitions for its path breaking
innovations in mobile telephony products and services . Idea won the prestigious NDTV
Business Leadership Awards in the telecom category for its solid consistent performance
in 2012 .It was the winner of ET Telecom Awards 2012, in the categories Customer
Experience Enhancement ,Excellence in Marketing and Innovative products. Idea
also won the Best Ad Compaign of the Year award for the popular honey bunny
compaign at the Telenet Telecom Awards 2012.

Idea won the Best Brand compaign at the esteemed world communication awards in
2012 and 2011. It also won the GSM Association Award for Best Billing and Customer
Care Solution for two consecutive years , and was awarded Mobile operator of the
Year Award- India for 2007 & 2008 at the Annual Asian Mobile News Awards.

Idea is listed on the National Stock Exchange [NSE] and Bombay Stock Exchange [BSE]
in India.

35
36
1.1.2 Founders Of Idea

37
1.1.3 Vision , Mission of Idea Cellular Limited

To be delight customers while meeting their individual communication needs anytime

any where.

To be the lead telecom service provider.

To provide quality and reliable fixed service to customers and thereby increase
customers confidence .

To facilitate R& D activity in the country

Providing telephone connection in villages as per government

policy .

Implement action of triple play regular commercial proposition.

Words , that important for completion of mission.

Values
o Ethical

o Truthful

o Principle

o Transparent

o Upright

o Respectful

38
 Commitment
o Accountability

o Discipline

o Responsibility

o Result orientation

o Self confidence

o Reliability

Passion
o Intensity

o Innovation

o Transformational

o Fire in the belly

o Inspirational

o Deep sense of purchase

Seamlessness
o Team work

o Integration

o Innovation

o Openness

o Global

o Learning from the best

o Empowering

39
 Speed
o Response time

o Accelerated

o Timelines

o Nimble

o Proactive, decisive

40
1.1.4. Organizational Chart of Idea Cellular Limited

41
1.1.5. Details of Product\ services of Idea

Mobile telephony

Wireless broadband

Mobile Telephony:
It is the provision of telephone services to phones which may move around freely rather than stay
fixed in one location. Mobile phones connect to a terrestrial cellular network of base stations [
cell sites], where as satellite phones connect to orbiting satellites. Both networks are
interconnected to the public switched telephones network [PSTN] to allow any phone in the
world to be dialed.

In 2010 there were estimated to be five billion mobile cellular subscription in the world.

42
Sim Card: A sim card also known as a subscriber identity module , is a smart card that stores
data for GSM cellular phone subscribers. Such data includes user identity, location and phone
number , network authorization data, personal security key, contact list and stored text messages.

Wireless Broadband
It is a technology that provides high speeds wireless internet access or computer networking
access over a wide area.

43
Residential Wireless Internet:

Providers of fixed wireless broadband services typically provide equipment to customers and
install a small antenna or dish somewhere on the roof. This equipment is usually deployed is a
service and maintained by the company providing that service.

Business Wireless Internet :

Many companies in the US and worldwide have started using wireless alternatives to incumbent
and local providers for internet and voice service.

Mobile Wireless Internet :

Called mobile broadband , wireless broadband technologies include services from mobile phone
service providers such as Verizon wireless, sprint corporation and AT & T Mobility , and T-
mobile which allow a more mobile version of internet access. Consumers can purchase a PC
cards, laptop cards or USB equipment to connect their PC or laptop to the internet via cell phone
towers.

44
45
46
47
Idea 3G rates

48
Idea Post Paid Plan:

49
Idea Prepaid Plan:

50
Idea 4G in India:

51
Comparison among 3G services in India:

About The Idea 4G:

52
4G: 4G also known as LTE ( Long Term Evolution ) stands for 4th generation of mobile
communication. It is the latest in mobile technology offering much higher internet speed.

Idea 4G LTE:
Its time is to explore a world of endless possibility online as the 4G LTE services have gone
live. Idea is currently offered 4G LTE high speed mobile internet services across 7 circles
namely Karnataka, Andra Pradesh, Kerala, Tamil Nadu & Chennai, Madhya Pradesh, Punjab &
Haryana. 5 other circles Maharashtra, North East, Orissa, Gujarat,Uttar Pradesh (west) will br
going like shortly.

Idea is offering its 4G internet plans at 3G data price along with 100% extra data. This extra data
make Idea 4G plans much more attractive than Vodafone & Airtel. However , as this extra data
is available under a special offer, it wont be available for long.

Its 1 GB 4G data plan costs Rs 249 and comes with a validity of extra of 28 days. On including
the extra data it comes out to be 2 GB 4G data for Rs 249 with a validity of 28 Days.

Ideas 10 GB 4G data plan ( 20 GB including extra data ) is valid for 30 days and will cost Rs
1346.

53
54
1.1.6. Corporate Strategy:

Operation of Idea:
Idea competes with other major operators including airtel , Vodafone, BSNL, Reliance, aircel ,
Telenorand Tata Docomo. While Idea competed very closely with then smaller operator like
Reliance Communication, BSNL, Tata Docomo, Aircel in circa 2006-07, as of 31st December
2015. Idea has gone for ahead of the rest of these competitors locking a revenue market share of
over 18.5% while the rest remain below 9% . Over the last 3 years , Idea has cornered an
incremental Revenue market share of 33 % giving tough competition in market leaders Airtel
and Vodafone by earning 1/3rd of the incremental market way above its fair share of the market.

On 19 May 2010, in the 3G spectrum auction , Idea paid 5,768.59 Crore for spectrum in 11
circles . Idea launched its first 3G services in 2011 . As of 31st March 2016, Idea Cellular
offers 3G services on its own spectrum in 13 telecom services areas . The latest being Delhi [
NCR ] and Kolkata. Idea has now launched its own 4G LTE services in over 350 towns across
10 telecom services areas including its leadership services areas like Maharashtra , Kerala,
Madhya prades & Chattish Garh , Andra Pradesh & Tamilnadu, Punjab & Haryana. It now
provides 4G services in the service areas of Karnataka & Tamilnadu covering large metros and
mini metros of Chennai &Bengaluru..

Idea strengthened its customer base after the launched of MNP in India. As per information
available in the public domain. Idea leads the net port in and is ahead of both Airtel and
Vodafone in gaining from Mobile number portatbility.

Marketing Strategy of Idea cellular Limited:

Idea is 3rd largest mobile service operator in the India, in revenue term, and recorded as a
subscriber base of over 100 million or 17.28 % (approx) of the total mobile connections in India
as of 31st January 2012. As on 31st January 2012, the company is leading the MNP race, with a
net gain of close to 11 million subscribers. The company also leads all other competitors in have
the most active subscriber base, scoring highly on the VLR statistics. Idea s revenue for the
2011 stands at $3.43 billion. Commonly Idea is the 6th largest mobile operator by subscriber
base. Idea Cellular acquired 3g licenses in 11 telecom circles for Rs 5768.59 Crore during the
55
spectrum auction in May 2010. 3G services have already been launched in 7 circles out of the
11 circles that Idea has acquired licenses . Idea cellular is planning to be world class internet
service provider [ ISP] in India. It is working to established state of the art infrastructure.

SWOT Analysis :
Strength:

Strong brand recognition

Internet sales

Growing reputation in global market

Weakness :

Complexity of operators

Absence in rural , southern areas due to presence of existing competitors like

aircel, docomo

Opportunities :

Expanding business operations

Value added services

Utilize 3G spectrum in 11 of 22 circles in India by providing services like

wiMax and LTE

Expand rural research

56
 Threat :

Fluctuation in foreign currency

Government policies

Current Customer Segmentation:

Idea Cellular currently segments its customer profile into two basic groups:

I. Prepaid Customers

II. Postpaid Customers

Prepaid customers are generally the personal use customers that is non institutional . This
segment accounted for around 80 % of customers base and remaining 20 % was accounted for
by the postpaid customer base.

Target Market:
The target market is the high revenue generating segment of the platinum and gold customers. It
is strategic for the company to increase user base in these two segments as they generate a
steady income sources and most being post paid , the companyis usually assured of each of
collection of bills.

57
Ideas financial statements :

58
1.1.8. Competitors of Idea:
Airtel
Vodafone
Tata Docomo
Aircel
BSNL

59
60
Comparison Chart of Telecom services:

61
62
63
64
1.1.9. Brand Ambassador of Idea and Tag line:
Abhishek Bachhan as the Brand Ambassador of Idea and he is the Indain Actor.

The tag line what an Idea is very successful providing the effectiveness of the
advertising and promotional activities carried by Idea.

65
1.2 Breif Profile of the Organization imparting the training:

Name of Distributors : R.B. Jwellers

Founded : 14 April 2016
Address : Basnehi bajar, Mirzapur ,231001
Owner s Name : Mr. Ram Kumar Agrahri
Owner s contact number :9598675895
Key People: Mr. Gopal Agrahri ( Manager)
Mr. Vikas Gupta ( ASM)
Mr. Akhilesh Awadhiya (TSM)

66
Daily Diary
Date wise reporting of tasks, assignment and achievement.

The training was started from 13 June 2016 and ended to 27 July 2016. The time
duration of training was 45 days. All the task , assignment and achievement are
completed in 45 days. Now date wise reportings were following:

13 June 2017 : On this day, I was meet with Mr. Vikas Gupta [ ASM ] for giving interview
for training programs.

14 June 2017: On this day, I gone office for introduce with owner and employees of that
enterprises.

15 June 2017: On this day, Mr. Vikas Gupta told meabout rules and regulations of that
particular organization which are very essential during training session.

16 June 2017: On this day, Mr. Vikas Gupta told me about my work of training that is KRO
Engagement Program. In this he provided me a questionnaire and list of that retailers which are
mentioned in KRO of Idea and I had to found that retailers fill the questionnaire with help of
them.

17 June 2017 to 12 July 2017: From 17 June 2016 to 12 July 2016, my work was continue
means I was completed my task of KRO.

13 July 2017: On this date , I was meet again to Mr. Vikas Gupta and telling him about
completion of my work. Now he wanted to give me another task which was decided next day.

14 July 2017: On this date, Mr. Vikas Gupta provided me a new task that was very similar to
previous task but difference is that I had to found that retailers which was not listed in KRO but
their selling of recharge and sim are good.

15 July 2017 to 26 July 2017: From 15 July 2016 to 26 July 2016, my work was
continued.

27 July 2017: On this date, finally I was submitted all the questionnaire to Mr.Vikas Gupta
and applied for training certificate .

67
I visited following shops for training pupose:

Shops which Listed in KRO:

S.No. Retailers V-Top No. Personal No.

1 Vidhya Deep Mobile 7309250228 9336570526

2 Santosh Mobile 9616508418 8090883108
3 Shivam Electronics 9616517365 9696283297
4 Deepak Telecom 9889072596 9919857452
5 Alok Mobile 8808454597 9170501130
6 Keshari PCO 9889149293 9935535859
7 Hansha Telecom 8573817465 9026392793
8 Shri Bala Ji Telecom 8573011771 9044724122
9 New Sangeet Collection 8726953862 9793280302
10 Pradumn Mobile 7309214673 7607321554
11 Abhay Mobile 9598372833 7388601037
12 Prakash Mobile 9795267350 9793289208
13 Mohit Telecom 7309213872 9452173274
14 Jai Mobile 8932876993 9793279733
15 Deepak Mobile Part 7618088249 9305022066
16 Om Provision 9889078716 9918805986
17 Om Grihasthi Store 8933848681 8418861976
18 RS Mobile 8933844021 9935664664
19 Anil Mobile Centre 7309196262 9580158585
20 Love PCO 8933844021 9380309333
21 Sangeet Collection 8808642520 9696684075
22 Pankaj Telecom 9598371398 9453214475
23 Pankaj Telecom 9889149316 9453214475
24 Maa Vidhyawasini Telecom 8808445641 9453928368
25 Vivek Communication 8577980858 7570028917
26 Deepak Telecom 8726589431 9307985571
27 Raj Mobile 9598930146 9415662695
28 Smiley PCO 9616927784 9125249548
29 Ishu Mobile 8417014584 9867113927
30 Bajrang Telecom 7860420103 8858686945
31 Ziya Mobile 8417870774 9170255881
32 Farhan Mobile 7860095040 9369956438

68
33 Verma Communication 7860400104 9839941269
34 Neelam Telecom 7860480104 7860480104
35 Divyansh Mobile 9889796523 9369543484
36 Tiwari Enterprises 7618912579 8858878767
37 Khusi Telecom 7309359971 7309359971
38 Maa Durga PCO 8933844029 8858515125
39 Shekhar Mobile 9616595355 9118266228
40 Shivam Mobile 9889078703 8896192164
41 Awdesh Mobile 7052972964 9644270040
42 Anoop Mobile 9616595157 8419081283
43 Aman Telecom 8808467853 8808657777
44 Dheeraj Mobile 8506869159 9125249256
45 Dinesh Telecom 8576868572 8576868576
46 Akhilesh Telecom 7618912582 9670429657

69
Shops which not listed in KRO:

S.No. Retailers V-Top No. Personal No.

1 Bala Ji Mobile 9616508098 9956937240
2 Nirmal Baba Mobile 9616163340 8924044390
3 Ashutosh Mobile 7309554451 9935533985
4 Aman Reliance PCO 9889796520 9794728940
5 Swastika Your Mobile 8933848457 9616568602
6 Abhilash Mobile Shop 7309019564 8896355665
7 Rahul Mobile 8808454338 9415073778
8 Gopi Mobile 9616383191 9450315737
9 Gupta Mobile 9506031050 8090033394
10 Pritam Telecom 9889078762 9335355041
11 Gupta Dot Com 8933839721 9044422567
12 KGN Comminication 9616932360 8090908053
13 Alisha Telecom 9889853222 9838584609
14 Chanchal Hello Point 9889078717 9889078717
15 Rimjhim Mobile 9598376922 9473731595
16 Sachin Mobile 8417013896 7068632100
17 Krish Mobile Campus 8932051590 9644707388
18 Om Sai Mobile & Gift Center 7309402728 7398538000
19 Hardik Mobile 9889078792 9889078792
20 Preeti Communication 9795453628 9795556777
21 Manchaha Telecom 9616932349 9336968756
22 Ayu Internet 9795181373 9125780500
23 Usha Telecom 9795681173 9838584606
24 Giga Byte Computers 7052301291 9044788556

70
 Chapter 3

Benefit of E-KYC Device in acquiring new

customer

71
Benefits Of eKYC
Benefits of eKYC to the Government, to the public and to

institutions are:

1. Consent Based

eKYC is consent-based in the sense an individual can share

data only after he or she uses Aadhaar or any other

approved authentication for verification. An individual that

requires a service or utility must file for eKYC of his or her

own accord and consent. This protects the individuals right

to privacy which is a fundamental right bestowed upon us by

our constitution.

2. Paperless System

eKYC is a paperless system that replaces the need for

document management with paper-based documents. This

enables a company, State or Country to reduce their carbon

footprints by going eco-friendly and using a cloud-based

online system. Not only does going paperless save the

72
 planet, it also helps in reducing costs associated with normal

KYC compliance.

3. Compliant With The IT Act

eKYC is compliant with the Information Technology Act of

2000. eKYC data transfer is enabled by digital signatures

and the use of encryption making an eKYC document legally

equivalent to a paper document. According to section 66C of

the IT Act, 2000 any individual is punishable for identity theft

with respect to eKYC as well.

4. Non-Repuidable

Non-repudiable means a person does not have the ability to

deny. The entire process of eKYC is non-repudiable to all

the parties involved because it involves the use of

authentication (Aadhaar and OTP/Biometric scan) by the

customer, application of digital signature by the Service

Provider (under UIDAI).

5. Instantaneous

The eKYC service is completely automated online. This

73
 means that KYC data can be transferred in real-time without

the need for any manual intervention. The paper-based KYC

process can take days up to weeks to get verified, but the

eKYC process takes just a few minutes to verify and issue.

6. Transparency Of Transactions Or Usage

Bank employees, private agents, unregulated sim card

providers, etc. may sometimes indulge in providing favours

for known accomplices, family and friends by misusing their

position. eKYC enables all records and data to be stored

permanently online. Any misuse, illicit gain or illegal activity

can be traced back to the individual or parties involved in

such transactions or usage of services.

7. Regulator friendly

All eKYC requests can be audited by the ministry or

regulator. The Service providers provide a portal for the

regulator to access and audit the same. The RBI, IRDA,

PFRDA and SEBI have accepted and currently use the

UIDAIs eKYC as a valid KYC.

74
The following benefits of eKYC are endowed on the customer:

1. Secure System

A customers account, data and information are secure

because the entire process is online. Identity theft, fraud,

loan scams, money laundering, the flow of black money, etc.

are all minimized with a secure online digital system of KYC.

2. EfficientCommunication

Effective information can be relayed in an efficient and timely

manner. Generally, with any automated system, there is no

need to constantly go back and forth because most details

are published automatically, unlike having to fill in a KYC

form manually.

3. Free of Cost Process

Usually, customers that opt to undergo eKYC

verification arent required to pay any additional amount for

75
doing so. A company or institution may have to undergo

automation costs of installing verification devices and

systems which are beneficial in the long-run.

76
 Chapter 4
Analysis & Interpretation

77
Data Analysis:

2.3.1.Collection Of Data:
The research methodology adopted is basically based on primary data via which the most recent
and accurate piece of first hand information could be collected. Secondary Data has been used to
support primary data wherever needed.

Primary Data was collected using the following techniques:

Questionnaire Method

Direct Interview Method

Observation Method

The main tool was the questionnaire method. Further direct interview , where a face to face
formal interview was taken. Lastly observation method has been continues with the
questionnaire method as one continuously observes the surrounding environment where I work
in.

Sources of Secondary Data:

Internet

Magazines

News Paper

Catalogues

Books

78
Objectives:

The main objective is to find customers satisfaction and preferences for Ideas network
and services in reference to Mirzapur City.

Helps in find the retailers perception about an Idea.

It also help in finding the effect of other telecom services like Airtel, BSNL, Vodafone,
Telenor, Aircel etc. on Idea.

Find that the better services from Idea are provided in Mirzapur City or not.

To know how many people use Idea network in the city.

To find the level of satisfaction of customers towards Idea.

Helps in comparison of Idea with other telecom services like Airtel, BSNL, Vodafone,
Reliance, Aircel& Telenor etc.

Analysis and Interpretation:

Data are analyzed manually and collected from the surveys.

Simple average are used to get answers the questions.

All answers of questions are get from retailers not from consumers.

79
Interpretation:

Average v-top of Idea in a month is Rs.20,000.

Average v-top of Airtel in a month is Rs.22,000.

Average v-top of Telenor in a month is Rs. 30,000.

Average v-top of Vodafone in a moth is Rs.15,000.

Average v-top of Aircel in a month is Rs.5,000.

Average v-top of BSNL in a month is Rs.18,000.

80
Interpretation:

22 Idea sim are activate in a month.

25 Airtel sim are activate in month.

30 Telenor sim are activate in month.

15 Vodafone Sim are activate in month.

10 Aircel sim are activate in month.

18 BSNL sim are activate in month.

81
Interpretation:
12data sim of Idea are activate in a month.

15 data sim of airtel are activate in a month.

No data sim of telenor are activate in a month.

12 data sim of Vodafone are activate in a month.

No data sim of Aircel are activate in a month.

5 data sim of BSNL are activate in a month.

82
Interpretation:
5 sim are port in Idea in a month.

6sim are port in Airtel in a month.

sim are port in Telenor in a month.

sim are port in Vodafone in a month.

2 sim are port in Aircel in a month.

sim are port in BSNL in a month.

83
5. More Profit provided by company to retailers.

Interpretation:
According to survey, the best profit provided to retailers by Telenor,then Airtel than Idea than
Vodafone than BSNL and finally than Aircel.

84
Interpretation:

DSE of Idea , Airtel & Telenor are visited in retail shop, all days in a weak.

DSE of Vodafone & Aircel are visited in retail shop , 5 days in a week.

DSE of BSNL is visited in retail shop, 4 days in a week.

85
Interpretation:
All TSM are visit in retail shop , once in week.

86
Interpretation:

Sim of Idea, Airtel, Telenor , Vodafone & BSNL are on in one day from it sold while Aircel sim
are on in 2 days.

87
9. Highest STV sold by Retailers.

Company STV ( in Rs.)

Idea 7,8
Airtel 78
Telenor 33

Vodafone 79
Aircel 11

BSNL 44, 88

Interpretation:
7, 8 STV are mostly sale in Idea.

78 STV are mostly sale in Airtel.

33 STV are mostly sale in Telenor.

79 STV are mostly sale in Vodafone.

11 STV are mostly sale in Aircel.

44 , 88 STV are mostly sale in BSNL

88
10. Recommended for new sim by customers.

Interpretation:
Most customers are firstly recommended for Telenor , than Airtel than Idea than Vodafone than
BSNL and than Aircel.

89
Interpretation:
50 % customers purchase Idea sim for calling while 50% purchase for using net.

90
Interpretation:
50 % retailers says network is best.

30 % retailers says network is good.

15 % retailers says network is fair.

5% retailers says network is poor.

91
Interpretation:

50 % retailers know their distributers name and number while 50 % dont know .

92
Interpretation:

95 % Retailers know TSM name and number while 5 dont knw.

93
15. Customer s demands in new sim.

Interpretation:

First customers wants the network is best then they wants data benefit, than wants call rate is not
too much high , than they see how many balance are available in new sim and than they finally
see sim MRP.

94
Interpretation:
40 % Retailers suggest to customers for purchasing of new sim that its network is best.

30 % Retailers suugested that data benefit.

30 % Retailers suggested that calling rate is not too much high.

95
Interpretation:

55 % customers prefer 3G.

45 % customers prefer 2 G.

96
Interpretation:
50 % customers say voice is good.

45 % customers say voice is fair.

5 % customers say voice is poor.

97
Interpretation:

85 % Retailers know the 7-8-9- STV while 15 % dont know.

98
Interpretation:
30 % Retailers suggested that offer & scheme should be continued for long time.

20 % Retailers suggested that Idea should provide gift for them.

20 % Retailers suggested that Idea provide new upgradation to them by employees ,

always.

10 % Retailers suggested that Idea should decrease the rate of data and calling.

15 % Retailers suggested that Idea should increased improvement in the services.

5 % Retailers did not given any suggestion.

99
 Chapter 5
Research Methodology

100
Research Methodology:
Research Methodology is considered as the nerve of the project . Without a proper well
organized research plan, it is impossible to complete the project and reach to any conclusion.

Research Design:
A Research Design is a logical and systematic plan, prepared for directing a research study. It
specifies the objective of study, the methodology and techniques to be adopted for the achieving
the objective. It constitutes the blue print for collection, measurement and analysis of data.

I have adopted Descriptive Research and Exploratory Research design for purpose of this
survey.

Descriptive Research Design:

This type of research is also grouping that includes many particular research methodology and
procedures such as observation, surveys, self reports and tests.

Exploratory Research Design:

This type of research includes a defining and formulating the research problem to be
investigated. It identify the possible nature of relationship that might exist between the variables
under study.

.Research Hypothesis:
When a prediction or a hypothesis relationship to be tested by scientific method , it is known as
Research Hypothesis.

101
Sampling Plan:

Sample Population:
Retailers, who selling Ideas product and services like sim , recharge, and tarrif etc. in Mirzapur
City.

Sample Size:
This project conducted for 70 respondents , generally who selling the Ideas services.

Sampling Techniques:
Convenient Sampling technique used for collecting information.

Area of Research:
I researched about the perception, preferences, and awareness about an Ideas product and
services in reference to ruler and urban area of Mirzapur city. So my area of research is
Mirzapur City.

Time Period of Study:

It has taken overall 45 days for completition.. The training was started from 13 June 2017 and
finally ended to 27 July 2017.

102
Chapter 6

103
2.3.8.Findings, Conclusions and Suggestions:

Findings:
It find that among all 70 respondents , mostly are saying Idea provided better services to
them and customers also , most of the customers are fully satisfied from Idea.

In this survey, it is clear that Idea havegood competitive advantage as compare to other
major telecom industry in Mirzapur City.

Most of Respondents well known about new offer and schemes launched by Idea.

Employees of Idea like TSM ,ASM ,& DSE are very active towards his task .

According to this survey, mostly customers uses Idea sim for net purpose rather than
calling.

Airtel , Vodafone & Telenor have strong impact on Ideas product selling.

Customers are satisfied from Ideas pricing.

From this analysis, it clear that very few customers have got post paid connection.

104
Conclusion:
Idea is one of the Indias leading company in telecom sector and it have great impact on other
major telecom industry. Its commitment to high quality market research ensures that it remains
fully aware of changes in consumer behavior and wants.

Ideas quotes what an Idea sir ji is the best & have popularity by audience.

From this survey report, it is clear

that Idea have great competitive advantage in Mirzapur City as compare to other big telecom
industry. In Mirzapur city , most of Ideas users uses Idea sim for net purposes due to better net
speed.

105
106
Books:
Philip Kotler [eight edition ] Marketing Management

C.P.Kothari Research Methodology

Articles:
Advertising and marketing magazines.

Marketing surveys & observation

Catalogue

Business world

Business Today

News paper

Websites:
www.idea.cellular.com

Tel:+91-22-66820000

107
Questionnaire:

KRO Engagement Programme

Name of Retail Outlet

Contact Person Name Shop Address
Vtop Number Alternate Number
Date of Birth Aniversary Date

Q-1

Avg.Vtop Idea Telenor Aircel

[in Rs.] Airtel Vodafone BSNL

Q-2

Avg.Activation Idea Telenor Aircel

[in month]] Airtel Vodafone BSNL

Q-3

Avg. Data Sim Idea Telenor Aircel

[in month]] Airtel Vodafone BSNL

Q-4

Avg. MNP Idea Telenor Aircel

[in month]] Airtel Vodafone BSNL

Q-5

Profit in star offer Idea Telenor Aircel

[in rank] Airtel Vodafone BSNL

108
Q-6

DSE Visit Idea Telenor Aircel

[in week] Airtel Vodafone BSNL

Q-7

TSM Visit Idea Telenor Aircel

[in week] Airtel Vodafone BSNL

Q-8

FTA to CAF Idea Telenor Aircel

Entry
[in days] Airtel Vodafone BSNL

Q-9

Highest STV Idea Telenor Aircel

sold
[in Rs] Airtel Vodafone BSNL

Q-10

Recommend for new Idea Telenor Aircel

sim
[in rank] Airtel Vodafone BSNL

Q-11

Reason for specific operator sim activation

109
Q-12

Network feedback

Q-13

Your Distributor Name & Number

Q-14

Idea Companies TSM Name & Number

Q-15

Rate 1-6 customer demand first

Sim Balance Data Benefit

Call Rates Network

Sim MRP Any Other

Q-16

Suggestion to attract Customers in Idea

110
Q-17

Customers feedback on 3G \2G

Q-18

Customers feedback on Voice

Q-19

Knowledge of 7-8-9

Q-20

Any other suggestion

111
112
113