1. DISSERTATION REPORT ON THE TOPIC:
“TO UNDRESTAND APPELATTE AND DND
METHOD ADOPTED BY IDEA IN TELECOM”
SUMITTED TO:
PROF. PRIYANKA NAYAR
SUBMITTED BY:
SREYASI CHAKRABORTY
PGDM 2014-16
EN. NO.: 040201130
SUBMITTED ON: 21.04.2016
2. ACKNOWLEDGEMENT
Writing a dissertation can never be the work of any one person. It includes co-
operation & efforts of those persons who are in some way involved in the work at
every stage for making this piece of work possible. I am sincerely thankful to all
those people who have been giving me any kind of assistance in the making of this
project report. I express my gratitude to Prof. Priyanka Nair, (Unitedworld
School of Business) who has through his vast experience and knowledge has been
able to guide me, both ably and successfully towards the completion of the project
and make most of the opportunity by expressing my sincerest thanks to all my
faculties whose teachings gave me conceptual understanding and clarity of
comprehension, which ultimately made my job more easy. Credit also goes to all
my friends whose encouragement kept me in good stead. Their continuous support
has given me the strength and confidence to complete the project without any
difficulty. I am also thankful to authority of Idea for providing me the information.
THANK YOU,
SREYASI CHAKRABORTY
3. CERTIFICATE
This is to certify that Sreyasi Chakraborty student of PGDM (2012-2014 batch)
at Unitedworld Schoolof Business, Ahmedabad has prepared a Dissertation Report
on “TO UNDRESTAND APPELATTE AND DND METHOD ADOPTED BY
IDEA IN TELECOM” in partial fulfillment of two years full-time PGDM
Programme of Unitedworld School of Business, Ahmedabad. This project work
has been undertaken by me and found satisfactory.
Date:21.04.2016
Prof. Priyanka Nair
Place:Ahmedabad Project Guide
4. DECLARATION
This project report entitled “TO UNDRESTAND APPELATTE AND DND
METHOD ADOPTED BY IDEA IN TELECOM” has been submitted to
Unitedworld School of Business, Ahmedabad in partial fulfillment for the award
of degree of Post Graduate Diploma in Management. I, the undersigned hereby
declare that this report has been completed by me under the guidance of Prof.
Priyanka Nair (Faculty member at Unitedworld Schoolof Business, Ahmedabad).
The report is entirely the result of my own efforts and has not been submitted
either in part or whole to any other Institute or University for any degree.
Name: Sreyasi Chakraborty
Enrolment No: 040201130
Date: 21.04.2016
5. PREFACE
The amount of knowledge in the world is doubling every ten years and with the end of the
millennium. It is now expected to double every five years. So if I plan to be in this knowledge
explosion means that I should be facing with unfrequented challenges and opportunities. How
well I address that it would depend upon, in large part of our ability to adapt to the continuing
changes. Project work like this gives an exposure to the practical and real life experiences of the
modern market.
Management education narrowly thought is a tool to train one’s mind to think beyond the box
and hence enables one to earn one’s livelihood. Management education broadly thought is a
method, which inculcates knowledge in one about planning, organizing, directing and controlling
moral and ethical aspect of corporate world. This knowledge helps students to understand the
corporate thoroughly.
This management education is given in meticulous way using different means of learning. A
classroom study contains theory, case study and presentations. With it, we use library for
secondary data of corporate and Project work as a field study for the primary data sources. With
it we have co-curricular and extra activity for the overall growth of the student.
For management students practical studies is very important. It helps them to improve their
knowledge about various market trends. Management students are concerned with marketing,
finance, HR etc.
Theories do not teach unless accompanied by the working in original situations. This
Dissertation report is also a part of our study.
6. INDEX
Sr. No. Topic
1.
1. Introduction
1.1. Current Scenario
1.2. Growth in Telecom
1.3. Market Players
1.4. Government Policies
1.4.1. Government Initiative
1.4.2. FDI Policy in Telecom
1.4.3. Investment Policy
1.5. Monthly Mobile Subscriber Addition
2.
2. About Company
2.1. Mission
2.2. Values
2.3. Key People
2.4. Partners
2.4.1 Value Added Services
2.4.2 Roaming
2.4.3 Brand
2.5. Partners
2.6. Company History
2.7. Sustainability
2.7.1 Network Infrastructure Initiatives
2.7.2 Idea’s Sustainability Initiatives
2.7.3 Communication Initiatives
2.7.4 Employee based Initiatives
2.7.5 Contact Information
2.8. Products
2.8.1 Voice Services
7. 2.8.2 Connectivity Services
2.8.3 Location Services
2.9. Division of service
2.10. Corporate Social Responsibility
2.11. Listing Information
2.12 Top Competitors
2.13 SWOT Analysis
2.14 Recent News and Media
2.15 Awards and Recognition
2.16 Financial Summary
3.
3. Service Delivery
3.1. Customer Interaction Management
3.1.1 Appellate and DND
3.1.1.1 Types of QRC by Customers
3.1.1.2 DND and VAS
3.1.1.3 Classification of Customers in SD
3.1.1.4 Software and Terminologies
4.
4. Findings and Suggestions
4.1. Findings
4.2 Suggestions
5. 5. Conclusion
6. 6. Reference
8. 1. Introduction of the industry:
The Indian telecommunications industry is one of the fastest growing in the world. Government
policies and regulatory framework implemented by Telecom Regulatory Authority of India
(TRAI) have provided a conductive environment for service providers. This has made the sector
more completive, while enhancing the accessibility of telecommunication services at affordable
tariffs to the consumers. In the last two decades, the Indian Telecom Sector and mobile
telephony in particular has caught the imagination of India by revolutionizing the way we
communicate, share information and thought its staggering growth helped millions stay
connected. This growth however has and continues to be at the climate, powered by an
unsustainable and inefficient model of energy generation and usage. Simultaneously, this growth
has also come at significant and growing loss to the state exchequer, raising fundamental
questions on the future business and operation model of the Telecom sector.
The telecom industry has witnessed significant growth in subscriber base over the last decade,
with increasing network coverage and a competition induced in tariffs acting as catalysts for the
growth in subscriber base. The growth story and the potential have also served to attract
increasing. The sector expected to witness up to US$ 56.3 billion investments and the market
will cross the US$ 101 billion mark in five years.
1.1.Current Scenario:
The Indian telecom sector has witnessed tremendous growth over the past decade. Today, the
Indian telecom network is the second largest in the world after China. A liberal policy regime
and involvement of the private sector have played an important role in transforming this sector.
The total number of telephones as on 31st April 2013 was 897.02 million.
The telecom industry has witnessed significant growth in subscriber base over the last decade,
with increasing network coverage and a competition-induced decline in tariffs acting as catalysts
for the growth in subscriber base. The growth story and the potential have also served to attract
newer players in the industry, with the result that the intensity of competition has kept
increasing. Internet subscribers in India grew to 164.81 million as of March 31, 2013, with as
many as seven out of eight net users in the country accessing the services via their mobile
phones, according to telecom regulator TRAI. The total number of mobile internet subscribers
stood at 143.2 million at the end of the last fiscal.
The number of broadband subscribers increased to 15.05 million as of March 31, 2013, from
14.98 million as of December 31, 2012. The number of non-mobile internet subscribers in the
quarter ended March 31, 2013, grew to 21.61 million from 21.57 million, registering a quarterly
growth rate of 0.16 per cent.
Liberalization of the sector has not only led to rapid growth but also helped a great deal towards
maximization of consumer benefits, evident from a huge fall in tariffs. Telecom sector has
9. witnessed a continuous rising trend in the total number of telephone subscribers and hence the
tele density. In simple terms, ‘Tele density’ is the number of landline telephones in use for every
100 individuals living within an area. A tele density greater than 100 means there are more
telephones than people.
Third-world countries may have a tele density of less than 10. Tele density is also an important
indicator of telecom penetration in the country. Tele density has decreased from 76.86 per cent
in December 2011 to 73.16 at the end of April, 2013. Tele density varies across circles and there
is significant urban-rural divide.
While urban tele density reached 139.33 per cent at the end of April 2013 and rural tele density
was only 40.49 per cent. Subscription in the urban areas decreased from 548.80 million in
February, 2013 to 544.55 million at the end of April, 2013. Subscription in rural areas increased
from 349.22 million to 352.47 million during the same period. The monthly growth rate of urban
and rural subscription is -0.77% and 0.93% respectively. The overall urban Tele density has
decreased from 146.96 to 145.58 and Rural Tele density increased from 41.02 to 41.37. Total
wireless subscriber base decreased from 867.80 million in March 2013 to 867.02 million at the
end of April 2013, registering a monthly growth of - 0.09%. This decline is largely due to
disconnections by some of the service providers. The share of urban wireless subscribers has
decreased from 60.53% to 60.11% where as share of rural wireless subscribers has increased
from 39.47% to 39.89%. The overall wireless Tele density in India has reached 70.71 from 70.85
of previous month. Wireless subscription in urban areas decreased from 525.30 million in March
2013 to 521.18 million at the end of April 2013. The wireless subscription in rural areas
increased from 342.50 million to 345.85 million during the same period. The urban wireless Tele
density has decreased from 140.67 to 139.33 and rural Tele density has increased from 40.23 to
40.59.
1.2. Growth in telecom:
Key factors, which will fuel the growth of the sector include increased access to services owing
to launch of newer telecom technologies like 3G and BWA, better devices, changing consumer
behavior and the emergence of cloud technologies. A majority of the investments will go into the
capital expenditure for setting up newer networks like 3G and developing the backhaul, among
other things.
Subscriber Base The mobile subscriber base in India is estimated rise by 9 per cent to 696
million connections this year, according to technology researcher Gartner. The mobile
service penetration in the country is currently at 51 per cent and is expected to grow to 72
per cent by 2016.
Mobile Value Added Services (MVAS) India's current MVAS industry has an estimated
size of US$ 2.7 billion. The industry derives its revenues majorly from the top five to six
products such as game based applications, music downloads, etc, which continue to form
10. close to 80 per cent of VAS revenues. The Indian MVAS industry estimated to grow to
US$ 10.8 billion by 2015, with the next wave of growth in subscriptions expected to
come from semi-urban and rural areas.
Mobile Number Portability (MNP) Mobile Number Portability requests increased from
89.70 million subscribers at the end of March 2013 to 91.73 million at the end of April
2013.
Handsets the mobile handset market's revenues in India will grow from US$ 5.7 billion in
2010 to US$ 7.8 billion in 2016, according to the study. India is the second largest mobile
handset market in the world and is set to become an even larger market with unit
shipment of 208.4 million in 2016 at a CAGR of 11.8 per cent from 2010 to 2016.
The Indian mobile handset market posted revenue of Rs 359.46 billion in 2012-2013, compared
to Rs 313.30 billion in the earlier fiscal year on the back of increasing sale of Smartphone’s. In
2012-2013, Karbonn grew 73.1 per cent, Samsung ended the year with revenue of Rs 113.28
billion compared to Rs 78.91 billion last year showing a growth of 43.6 per cent. The iconic
Apple posted revenue of Rs 12.93 billion in FY 2013 in the country compared to Rs 2.50 billion
in the previous financial year.
1.3. Market players:
With new players coming in, the intensity of competition in the industry has increased, especially
over the last four years. The market share of telecom operators of the telecom companies reflects
the fragmented nature of the industry, with as many as 15 players. As of April 30, 2012, Bharti
telecom led the market with 19.94 per cent share, Reliance (16.58 per cent), Vodafone (16.41 per
cent), Idea (12.4 per cent), BSNL (10.51 per cent), Tata (8.77 per cent), Aircel (6.93 per cent),
with the remaining share being held by other smaller operators.
Bharti is far ahead with close 20% market share in India, Reliance (16.58%) and Vodafone
(16.41) are having a close battle. Reliance currently has 154 million subscribers as compared to
152.5 million of Vodafone. Uninor, who is one of the late entrants in Indian Telecom market
now has over 45 million subscribers and accounts for close to 5 percent of Indian mobile market
share.
1.4. Government policy:
1.4.1. Government Initiative-
The Cabinet has given its approval to National telecom Policy (NTP) 2012. The policy directs
new initiatives, which includes free roaming, unrestricted Net telephony and a new unified
11. licensing regime for operators. The policy also endorses a boost to broadband expansion and an
increase in local manufacturing of telecom equipment.
The National Science and Technology Entrepreneurship Development Board (NSTEDB), the
Department of Science and Technology (DST), Government of India, Techno park and MobME
Wireless have joined hands to set up the Startup Village - Indian Telecom Innovation Hub in
Kerala. The country's first Public Private Partnership (PPP) telecom business incubator is a step
to support new product initiatives and turn them into successful ventures.
TRAI is also doing its bit to achieve the aim of carbon emission reduction under which operators
are directed to achieve carbon reduction to the extent of 5 per cent by 2012-13, 12 per cent by
2016-17 and 17 per cent by 2018-19. Concerning these norms under 'Green Telephony', TRAI
has further mandated for all the operators that at least 50 per cent of all rural towers and 20 per
cent of all urban towers are to be powered by hybrid power by 2015.
1.4.2. FDI Policy in Telecom:
Foreign direct investment (FDI) in telecom sector (including radio paging, cellular mobile, and
basic telephone services) during April-March 2011-12 stood at US$ 1,997 million, as per the
Department of Industrial Policy & Promotion (DIPP) data.
Total telephone subscriber base in the country reached 952.91 million at the end of April 2012
from 951.34 million at the end of March 2012.
Total Wireless subscriber base increased from 919.17 million in March 2012 to 921.02 million at
the end of April 2012. Wire line subscription stood at 31.89 million at the end of April 2012.
Overall tele-density has reached 78.71. Total Broadband subscriber base has increased from
13.79 million at the end of March 2012 to13.95 million at the end of April 2012, there by
showing a monthly growth of 1.13 per cent.
1.4.3 Investment Policy:
Foreign direct investment limit in telecom services is 74 per cent subject to the following
conditions:
This is applicable in case of Basic, Cellular, Unified Access Services, National/
International Long Distance, V-Sat, Public Mobile Radio Trunked Services (PMRTS),
12. Global Mobile Personal Communications Services (GMPCS) and other value added
Services.
Both direct and indirect foreign investment in the licensee company shall be counted for
FDI ceiling. Foreign Investment shall include investment by Foreign Institutional
Investors (FIIs), Non-resident Indians (NRIs), Foreign Currency Convertible Bonds
(FCCBs), American Depository Receipts (ADRs), Global Depository Receipts (GDRs)
and convertible preference shares held by foreign entity. In any case, the 'Indian'
shareholding will not be less than 26 per cent.
FDI up to 49 per cent is on the automatic route and beyond that on the government route.
FDI in the licensee company/Indian promoters/investment companies including their
holding companies shall require approval of the Foreign Investment Promotion Board
(FIPB) if it has a bearing on the overall ceiling of 74 per cent. While approving the
investment proposals, FIPB shall take note that investment is not coming from countries
of concern and/or unfriendly entities.
The investment approval by FIPB shall envisage the conditionality that the Company
would adhere to license Agreement.
FDI shall be subject to laws of India and not the laws of the foreign country/countries.
13. 1.5. Monthly mobile subscriber additions:
The following graph illustrates the gradual increase in monthly mobile subscriber additions (in
millions) in India since January 2010.
-30
-25
-20
-15
-10
-5
0
5
10
15
20
25
Januar
y
Februa
ry
March April May June July August Septe
mber
Octobe
r
Novem
ber
Decem
ber
2010 19.9 18.76 20.59 16.9 16.31 17.98 16.92 18.18 17.1 18.98 22.88 22.62
2011 18.99 20.2 20.21 15.34 13.35 11.41 6.67 7.34 7.9 7.79 2.97 9.47
2012 9.88 7.44 8 1.85 8.35 4.73 -20.61 -5.13 -1.74 -2.39 -13.63 -25.88
2013 0.4 -1.97 5.35 6.33 8.95 12.12 9.9 11.42 7.99 5.78 20.47 18.11
Monthly mobile subscribers
14. 2. About the company:
Idea Cellular is an Aditya Birla Group Company, India's first truly multinational corporation.
Idea is a pan-India integrated GSM operator offering 2G and 3G services, and has its own
NLD and ILD operations, and ISP license. Idea has won spectrum to launch 4G services
across 10 key markets and has initiated multiple steps towards introduction of 4G LTE
services on 1800 MHz, in a phased manner from calendar year 2016 onwards.
With revenue in excess of $5 billion; revenue market share of nearly 18.2% (as on Q4FY15);
and subscriber base of over 165 million, Idea is one of the top 3 mobile operators. Idea is the
sixth largest mobile operator in the world, based on number of subscribers in single country
operations (GSMA Intelligence). Idea carries a traffic of over 2 billion minutes a day.
Idea has a deep rooted network across the length and breadth of the country comprising of
over 1,49,196 cell sites covering 7,513 towns and 3,63,580 villages as on Q1FY16.
Using the latest in technology, Idea provides world-class service delivery through the most
extensive network of customer touch points, comprising of nearly 6,752 Idea touch points.
Idea’s 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 service areas and the
corporate office.
Idea has consistently stayed ahead of the industry in VLR reporting. Idea’s thought
leadership on Mobile Number Portability (MNP), with Net Gain of over 14 million
customers as on June 30, 2015, has enabled it to stay as the top gainer among other telecom
players. Every 4th mobile user who exercises choice through MNP, prefers Idea.
Idea has been a pioneer in introducing customized product offerings for segmented
customers. It is the first mobile operator to introduce innovative value added services in the
Indian telephony market, and has remained ahead of the industry in data product offerings.
Driving the growth of mobile broadband in India, Idea services over 37.2 million data users
(as on Q1FY16). Today, data contributes over 17.7% of Idea’s service’s revenue.
Idea has received several national and international recognitions for its path-breaking
innovations in mobile telephony products and services. Idea won the prestigious Voice &
Data Telecom Leadership Awards 2014 under the Leadership Recognition category “for
various successful initiatives and deployments in the areas of Business Services, Internet &
Broadband, Business Analytics, Information Security, and Customer Service”. It was
recognized as “Most Innovative Telecom Service Provider of the Year” and “Mobile Data
Service Provider of the Year“ by Frost & Sullivan Asia Pacific ICT Awards 2015. It won
Dataquest Business Technology Award in Analytics category for the “Implementation of
end-to-end Campaign Management solution”.
Idea is listed on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE)
in India. Idea has been voted by investors as one of Asia’s Best Companies in 2015 in a poll
conducted by Finance Asia under the categories: Best CEO, Best CFO, Best Managed Public
Companies, Best Corporate Governance and Best Investor Relations.
15. 2.1 Mission:
"We will delight our Customers while meeting their individual communication needs anytime
anywhere"
2.2 Values
Integrity - Honesty in Every Action
At Aditya Birla Group, Integrity is defined as: Acting and taking decisions in a manner that is
fair, honest, following the highest standards of professionalism and also perceived to be so.
Integrity for us means not only financial and intellectual integrity, but in all other forms as are
commonly understood.
Key words that connote Integrity are:
Ethical, Truthful, Principled, Transparent, Upright, Respectful
Commitment - Deliver on the Promise
At Aditya Birla Group Commitment is defined as: On the foundation of integrity, doing
whatever it takes to deliver value to all stakeholders. In the process, that means taking ownership
of our actions and decisions, those of our team and that part of the organization that we are
responsible for.
Key words that connote Commitment are:
Accountability, Discipline, Responsibility, Result –orientation, Self-confidence, Reliability
Passion - Energized Action
At Aditya Birla Group Passion is defined as: A missionary zeal arising out of emotional
engagement with the organization that makes work joyful and inspires each one to give his or her
best. Relentless pursuit of goals and objectives with the highest level of energy and enthusiasm,
that is voluntary and spontaneous.
Key words that connote Passion are:
Intensity, Innovation, Transformational, Fire-in-the-belly, Inspirational, Deep sense of purpose
Seamlessness - Without Boundaries in Letter and Spirit
At Aditya Birla Group, Seamlessness is defined as: Thinking and working together across
functional silos, hierarchies, business and geographies. Leveraging the available diversity to
garner synergy benefits and promote openness through sharing and collaborative efforts.
Key words that connote Seamlessness are:
16. Teamwork, Integration, Involvement, Openness, Global, Learning from the best, Empowering
Speed - One Step Ahead Always
At Aditya Birla Group, Speed is defined as: Responding to internal and external customers with
a sense of urgency. Continuously seeking to crash timelines and choosing the right rhythm to
optimize organization efficiencies.
Key words that connote Speed are:
Response time, Agile, Accelerated, Timelines, Nimble, Prompt, Proactive, Decisive
2.3 Key People:
Mr. Himanshu Kapania - Managing Director
Mr. Ambrish Jain - Deputy Managing Director
Mr. Akshaya Moondra - Chief Financial Officer
Mr. Navanit Narayan - Chief Service Delivery Officer
Board of Directors:
Mr. Kumar Mangalam Birla (Chairman)
Smt. Rajashree Birla
Mr. Himanshu Kapania (Managing Director)
Mr. Arun Thiagarajan
Ms. Tarjani Vakil
Mr. Mohan Gyani
Mr. Gian Prakash Gupta
Mr. R.C. Bhargava
Mr. P. Murari
Ms. Madhabi Puri Buch
Mr. Sanjeev Aga
Dr. Shridhir Sariputta Hansa Wijayasuriya
17. 2.4 Partners
Idea welcomes all businesses and individuals interested in partnering with us to enhance and
strengthen the Idea products & services portfolio. .
Some of our partners include:
2.4.1 VALUE ADDED SERVICES:
19. 2.5 Company History:
2014
Subscriber base as on December 31, 2014: 150,536,058
Won 3G spectrum for Delhi metro and 4G LTE spectrum for 8 service areas
6th largest mobile operator in terms of number of subscribers in single country operations:
GSMA Intelligence Report
Raised Rs. 3,000 Crores through Qualified Institutions Placement
2013
Subscriber base as on December 31, 2013: 128,685,043
Became the 3rd largest mobile operator in India in subscriber terms as well
Received a USD 1 million Grant from US Trade and Development Agency for a Green Telecom
Project
2012
Subscriber base as on December 31, 2012: 113,946,827
Won back spectrum for 7 circles for which licenses were quashed by the Supreme Court.
Became a $4 Billion Company in revenue
Established a robust network of over 100,000 cell sites across the country
2011
Subscriber base as on December 31, 2011: 106,380,111
First operator to announce the launch of Mobile Number Portability, have been the Top gainer
ever since the service was launched.
Launched 3G in 10 circles – Andhra Pradesh, Gujarat, Haryana, Himachal Pradesh, Jammu &
Kashmir, Kerala, Madhya Pradesh and Chhattisgarh, Maharashtra and Goa, Uttar Pradesh (East),
Uttar Pradesh (West).
20. Idea entered the devices category with the launch of affordable 3G smart phones.
Only operator in the country to have ISO 9001:2008 certification for its service delivery platform
for all 22 service areas and the corporate office
2010
Subscriber base as on December 31, 2010: 81,778,655
Idea won 3G Spectrum in 11 service areas in India. These markets account for over 81% of the
company’s total revenue
Idea crossed usage of ‘One Billion’ Minutes per day on the network, propelling it amongst the
Top 10 country operators in the world
Idea emerged as the 3rd largest mobile operator in India, in revenue terms.
2009
Subscriber base as on December 31, 2009: 57,611,872
Idea becomes a pan-India operator
Emerging Company of the Year - fastest growing mobile operator in the world’s fastest growing
telecom market
Becomes pan-India operator in 2009
21. 2008
Subscriber base as on December 31, 2008: 40,016,153
Idea acquired 9 licences for Punjab, Karnataka, Tamil Nadu & Chennai, West Bengal, Orissa,
Kolkata, Assam, North East and Jammu & Kashmir
Acquired Spice Communications with the operating circles of Punjab and Karnataka
Launched services in Mumbai metro in the largest single metro city launch, ever
Launched services in Bihar
2007
Subscriber base as on December 31, 2007: 21,054,027
Won an award for the "CARE" service in the "Best Billing or Customer Care Solution" at the
GSM Association Awards in Barcelona, Spain
Initial Public Offering aggregating to Rs. 28,187 million and Listing of Equity Shares on the
Bombay Stock Exchange and the National Stock Exchange
Merger of seven subsidiaries with Idea Cellular Limited
Reached the twenty million subscriber mark
2006
Subscriber base as on December 31, 2006: 12,442,450
Became part of the Aditya Birla Group subsequent to the TATA Group transferring its entire
shareholding in the Company to the Aditya Birla Group
Acquired Escorts Telecommunications Limited (subsequently renamed as Idea
Telecommunications Limited)
Restructuring of debt
Launch of the New Circles
Reached the 10 million subscriber mark
Received Letter of Intent from the DoT for a new UAS License for the Mumbai Circle.
22. It received Letter of Intent from the DoT for a new UAS License for the Bihar Circle through
Aditya Birla Telecom Limited. ABNL, the parent of Aditya Birla Telecom Limited, pursuant to a
letter dated November 22, 2006, agreed to transfer its entire shareholding in Aditya Birla
Telecom Limited to the Company for the consideration of Rs. 100 million.
2005
Subscriber base as on December 31, 2005: 6,473,962
Reached the five million subscriber mark
Turned Profit Positive
Won an Award for the "Bill Flash" service at GSM Association Awards in Barcelona, Spain
Sponsored the International Indian Film Academy Awards
2004
It completed debt restructuring for the then existing debt facilities and additional funding for the
Delhi Circle.
Acquired Escotel Mobile Communications Limited (subsequently renamed as
Idea Mobile Communications Limited)
Reached the four million subscriber mark
First operator in India to commercially launch EDGE services 2005
Acquired Escotel, incumbent cellular service provider in Haryana, UP(W) & Kerala and new
23. licensee in HP 2003 Reached the two million subscriber mark
2002
Changed name to Idea Cellular Limited and launched "Idea" brand name
Commenced commercial operations in Delhi Circle
Reached the one million subscriber mark
Brand IDEA launched Delhi operations commence (Nov 2001
Acquired RPG Cellular Limited and consequently the license for the Madhya Pradesh (including
Chattisgarh) Circle
Changed name to Birla Tata AT&T Limited
Obtained license for providing GSM-based services in the Delhi Circle following the fourth
operator GSM license bidding process
Acquired RPG Cellcom, service provider in Madhya Pradesh (Feb) Awarded
2000: Merged with Tata Cellular Limited, thereby acquiring original license for the Andhra
Pradesh Circle
24. 1999
Migrated to revenues share license fee regime under New Telecommunications Policy ("NTP")
1997
Commenced operations in the Gujarat and Maharashtra Circles
MoU for merger between Birla AT&T and Tata Cellular Limited Andhra Pradesh signed (Jan)
1996
Changed name to Birla AT&T Communications Limited following joint venture between Grasim
Industries and AT&T Corporation
1995
Incorporated as Birla Communications Limited
Obtained licenses for providing GSM-based services in the Gujarat and
Maharashtra Circles following the original GSM license bidding process.
25. 2.6 Promoters
Idea Cellular is part of the Aditya Birla Group, India's first truly multinational corporation.
Global in vision, rooted in Indian values, the Group is driven by a performance ethic pegged on
value creation for its multiple stakeholders.
The group operates in 25 countries, and is anchored by over 100,000 employees belonging to 25
nationalities. The Group has been adjudged 'The Best Employer in India and among the Top 20
in Asia' by the Hewitt-Economic Times and Wall Street Journal Study 2007.
A premium conglomerate, the Aditya Birla Group is a leader in swathe of products - viscose
staple fibre, aluminium, cement, copper, carbon black, insulators, garments.
The Group has also made successful forays into financial services, telecom, software, BPO and
retail sectors. Today, the Group is India's most diversified business house.
The Promoters are:
Aditya Birla Nuvo Limited
Grasim Industries Limited
Hindalco Industries Limited
Birla TMT Holdings Private Limited
2.7 Sustainability
2.7.1 Idea’s Sustainability Initiatives
Telecom services are recognized world-over as an important tool for the socio-economic
development of a nation. It is one of the prime support services essential for rapid growth and
modernization of various sectors of the economy. In India too, the telecommunication sector has
revolutionized the way we communicate and share information, thereby helping over 800 million
Indians stay connected, over the last two decades.
The telecom industry globally is cognizant of the fact that it needs to lighten its carbon footprint.
And, in the Indian telecom sector, Idea is leading the search for green energy options.
Idea Cellular, part of the Aditya Birla Group which is India’s first truly global conglomerate, is
one of the oldest players in the Indian telecom industry and has played a key role in the
development of mobile telephony, particularly in rural India. As part of a socially responsible
corporate group, Idea has and continues to adopt policies, and business strategies to effectively
integrate emerging environmental, social and economic considerations.
26. Whether it’s through conserving energy, recycling, or finding innovative solutions to
environmental and social challenges, Idea is committed to being a respectful, responsible and
positive influence on the environment and the society in which we operate. Efficient power
management, infrastructure sharing, use of eco-friendly renewable energy sources, leveraging
the latest in technology to reach out to a large audience in most energy efficient manner such as
video and teleconferencing, smart logistics, etc. are some of the best practices in our network
infrastructure and day-to-day business operations, to ensure a clean and green environment.
2.7.2 Network Infrastructure initiatives
In our effort to give back to the environment and reduce the collective carbon foot print of the
telecom sector in India, Idea pioneered the concept of ‘Shared Telecom Infrastructure’ services,
along with a few other industry leaders in the wireless space. This initiative is committed
towards continuous innovation endeavors; optimization of future tower rollouts; and enhanced
operational efficiencies leading to a substantial reduction of carbon foot print.
The Indian telecom industry’s first collaborative, cross-industry consortium to encourage the
development of environmentally sustainable mobile networks was also led by Idea, and
supported by the GSMA. The pilot, aimed at developing befouls as a source of power for
wireless networks in rural India which are located beyond the reach of the national electricity
grid, was conducted in parts of Andhra Pradesh and Maharashtra. The learning’s of the research
were later handed to the infrastructure company which owns the towers, to explore broad basing
of the program.
In a bid to reduce energy consumption by our BTS, Idea chose OD BTS (outdoor BTS) as our
preferred BTS type in 2007. Currently, over 40% our total BTS portfolio comprises of OD BTS,
which has resulted in reducing our conventional energy consumption by about 25% as compared
to the ID BTS (indoor BTS). Efforts are also on to re-deploy ID BTS to OD BTS sites, in some
locations, which will further reduce energy consumption at these sites by 25%.
Idea has explored a Solar Hybrid Solution for running our BTS in parts of rural Bihar. We plan
to install Solar Hybrid sets at 200 sites by end of FY 12. This will reduce the fuel consumption of
power generator from running for 15-16 hours to less than 5 hours a day in these locations.
Idea is also part of the Fuel Cell project, initiated by our Group. The project aims at exploring the
usage of Hydrogen as an alternate energy source to power mobile base stations. Currently, a trial
project, if successful, this program has the potential of reducing the usage of a regular power
generator to Zero.
Additionally, we are working on a range of other projects all of which are aimed at
experimenting alternate energy sources to fuel base stations and reduce operating expenditure for
the company.
27. 2.7.3 Communication initiatives
With a subscriber base of nearly 10 crore, we have an opportunity to influence a large mass of
people by promoting green initiatives through our various communication programs and
customer service initiatives.
It was Idea which germinated the thought of ‘Use Mobile, Save Paper’ in the minds of millions
of mobile users in India, with its aggressive yet thought provoking campaign. Idea designed the
campaign to highlight numerous ways of saving paper, and thereby saving the green cover
necessary for the health of the planet, by using a range of mobile based value added services in
day-to-day activities to replace paper.
Idea was amongst the first mobile operators in India to promote v-Top up recharges for prepaid
users, in a major way. Soon, this led to the virtual phasing out of paper-based recharge vouchers,
which has ultimately resulted in saving tones of paper which would have otherwise been used in
making recharges available to millions of mobile users across the country.
Another recent and ongoing initiative is e-Bill which is being consistently promoted by Idea to
ensure that more and more users opt for this service, and contribute towards saving paper.
Breaking all conventions, Idea has now conceived another innovative program which is aimed at
reducing plastic consumption on a large scale. In a major overhaul of its logistics management,
Idea has now introduced the ‘PICO’ card, which is a half-size plastic card that bears the SIM
card, in a new connection kit. For decades, new mobile users have been handed out welcome kits
by operators which carry a large size plastic piece with the SIM card inserted in the box. Idea has
now become one of the first operators, globally, to introduce the new PICO card which is
expected to save over 90% of plastic used in manufacturing regular cards. Considering that Idea
adds about 2 million new connections every month, this initiative would result in substantial
reduction of plastic usage.
As a company listed on BSE and NSE, Idea has a base of over 360,000 shareholders who we
communicate with, on a regular basis. All company communication to our shareholders and
investors, such as Notices, Annual Reports etc. are sent through e-mail rather than printed copies
through post, thus dramatically reducing our printing and mailing costs while making a positive
impact on the environment.
2.7.4 Employee BasedInitiatives
Idea’s HR operations have all been enabled online for its over 7,000 employees, to ensure that
there is minimal paper documentation. This has again helped us save tones of paper that would
have been used in day-to-day HR related transactions and communication.
We use smart ICT solutions such as teleconferencing, videoconferencing, web chats etc. for
internal communication amongst employees to minimize travel.
28. We believe that Idea employees are the flag bearers of the organization. They enable the
organization to realize its mission and goals, and meet commitments. Idea employees have
played a key role in keeping our pledge to do our bit for the environment. ‘Bus Karo’ is an
initiative centered around a large group of Idea employees who commute to office, daily in their
own cars. Through the program these employees use a pooled bus service for office commuting
in peak hours, everyday. One such bus potentially lessens 30 cars from everyday traffic jams,
saving over 1200 tonnes of Carbon emissions per annum.
Driven by its socially conscious parent Group, Idea stays committed to the cause of giving back
to the environment. We will continue to drive our efforts towards environment sustainability by
reducing carbon foot print and energy consumption.
2.7.5 Contact Information:
Registered office
Idea Cellular Limited
Suman Tower, Plot No. 18, Sector 11
Gandhinagar – 382 011
Gujarat, India
Tel: +91 79 6671 4000
Fax: +91 79 2323 2251
Web Site: www.ideacellular.com
Corporate office
Idea Cellular Limited
'Windsor', 5th Floor, Off CST Road,
Near Vidya Nagari, Kalina, Santacruz(E),
Mumbai – 400098
Tel: +91 95940 04000
Fax: +91 95940 03181
29. 2.8 Products:
2.8.1 Voice Services:
Idea Concall:
Idea ConCall is a simple, convenient & cost-effective audio conferencing service. This service
allows multiple people at different geographical locations to enagage in a conference call in their
own virtual meeting room.
Hosted IVR:
Idea offers hosted IVR solutions that help Enterprises to manage various business processes
without investing on expensive hardware and database servers thereby managing resources in
their core business domain.
Toll Free Solution
Idea offers Toll Free Solutions, popularly known as the 1800 number which is a special
telephone number. This is free to the calling party and charged to Enterprise.
Idea Toll Free has now become an important business and branding tool for Enterprises to enable
their customers to reach them anytime, anywhere at no cost.
2.8.2 Connectivity Services:
Field Force Automation Solution
Idea Field Automation (FFA) is a mobile CRM Tool that helps to speed up and streamline all
phases of business from prospecting, lead management, sales tracking, stock, services and order
management.
Secured Connectivity Solution (!-SAFE)
Idea !-SAFE solutions help Enterprises provide secured wireless connectivity between remote
employees connected through Idea wireless internet data connectivity and enterprise
intranet/internet server.
2.8.3 Location Services:
Work Force Tracking Solutions
Idea Work Force Tracking solution is location based service which helps Enterprises with large
remote workers to optimally manage their work force for better productivity and performance.
Solution is based on advance Cell ID technology and service is compatible with all makes of
GSM handsets from basic GSM phone to smart phone fitted with Idea SIM.
30. 2.9 Divisions of service:
2.9.1 Postpaid:
With Idea postpaid, it's time to stop worrying about high bills or your minutes running out. Call
it one of the many benefits of choosing Idea postpaid. There is more. Economical roaming
options, mobile internet offerings that always keep you connected and the kind of network
coverage that you can count upon anywhere.
2.9.2 Prepaid:
There is a range of prepaid plans to suit your needs. Discover prepaid options to control your
expenditures. Choose from Extra talk time offers, Full Talk time Vouchers, Top-up Vouchers,
Special Tariff Vouchers, Combo Vouchers and Plan Vouchers. Roaming options, mobile internet
offerings that always keep you connected and the kind of network coverage that you can count
upon anywhere.
2.9.3 VAS- Value Added Services:
From what your Stars Foretell to the latest in Bollywood to up-to-the minute Cricket Scores to
the tranquility of Devotional Music - we have it all. Explore our range of Value Added Services
and make your phone your Personal Entertainment Centre!
2.9.4 Mobile Internet
Stay connected with your friends and family with Idea's Mobile internet plans. Experience
superfast Internet anywhere, anytime!
2G
3G
4G
2.9.5 Roaming
Roam on Idea across India. At Idea, each one of our customers is special for us. Our roaming
services ensure that even when you are out of home, you are closer to friends and family.
International Roaming
Domestic Roaming
31. 2.10 Corporate Social Responsibility
For every Company in the Aditya Birla Group, reaching out to underserved communities is part
of our DNA. We believe in the trusteeship concept. This entails transcending business interests
and grappling with the “quality of life” challenges that underserved communities face, and
working towards making a meaningful difference to them.
Our vision is - “to actively contribute to the social and economic development of the
communities in which we operate. In so doing build a better, sustainable way of life for the
weaker and marginalized sections of society and raise the country’s human development index”
(Mrs. Rajashree Birla, Chairperson, Aditya Birla Centre for Community Initiatives and Rural
Development).
Implementation process: Identification of projects
All projects are identified in consultation with the community in a participatory manner, literally
sitting with them and gauging their basic needs. We recourse to the participatory rural appraisal
mapping process. Subsequently, based on a consensus and in discussion with the village
panchayats, and other stakeholders, projects are prioritized. Arising from this the focus areas that
have emerged are Education, Health care, Sustainable livelihood, Infrastructure development,
and espousing social causes. All of our community projects/programmes are carried out under
the aegis of The Aditya Birla Centre for Community Initiatives and Rural Development. The
activities are in line with Schedule VII of the companies Act, 2013 as indicated –
In Education, our endeavour is to spark the desire for learning and knowledge at every stage
through • Formal schools • Balwadis • Quality elementary education • Aditya Bal Vidya Mandirs
• Girl child education • Non formal education.
In Health care, our goal is to render quality health care facilities to people living in the villages
and elsewhere through our Hospitals. • Primary health care centres • Mother and Child care
projects • Immunization programmes with a thrust on polio eradication •Programmes to address
malnutrition. • Anganwadi • Adolescent health • Health care for visually impaired, and
differently abled • Preventive health care through awareness programmes • Non communicable
diseases.
In Sustainable Livelihood our programmes aim at providing livelihood in a locally appropriate
and environmentally sustainable manner through • Formation of Self Help Groups for women
empowerment • Skill Enhancement and Vocational training • Partnership with Industrial
Training Institutes • Agriculture development and better farmer focus • Animal Husbandry • Soil
and Water conservation • Watershed development. •Agro Forestry
32. In Infrastructure Development we endeavour to set up essential services that form the foundation
of sustainable development through • Basic infrastructure facilities • Housing facilities • Safe
drinking water • Sanitation & hygiene • Renewable sources of energy.
To bring about Social Change, we advocate and support • Dowry less marriage • Widow
Remarriage • Awareness programmes on anti social issues • De-addiction campaigns and
programmes • Espousing basic moral values. • Gender equality •
Activities, setting measurable targets with timeframes and performance management
Prior to the commencement of projects, we carry out a baseline study of the villages. The study
encompasses various parameters such as – health indicators, literacy levels, sustainable
livelihood processes, and population data - below the poverty line and above the poverty line,
state of infrastructure, among others. From the data generated, a 1-year plan and a 5-year rolling
plan are developed for the holistic and integrated development of the marginalized. These plans
are presented at the Annual Planning and Budgeting meet. All projects/programmes are assessed
under the agreed strategy, and are monitored every quarter, measured against targets and
budgets. Wherever necessary, midcourse corrections are affected. The surplus arising out of the
projects/programmes does not form part of the business profit of the company.
Organizational mechanism responsibilities
The Aditya Birla Centre for Community Initiatives and Rural Development provides the vision
under the leadership of its Chairperson, Mrs. Rajashree Birla. The CSR committee of Directors
at the Board level comprises of:
Mrs. Rajashree Birla, Chairperson
Mr. Himanshu Kapania, Director
Mr. P. Murari, Independent Director
Permanent Invitee: Dr. (Mrs.) Pragnya Ram, Group Executive President, Corporate
Communications and CSR
All projects/programmes are placed before the CSR committee, specifying modalities of
execution of such projects/programmes and the implementation schedules.
A robust implementation structure, monitoring process and a team of professionals is in place at
the Company units.
The company take all actions to comply with Section 135 of the Companies Act, 2013 and the
rules made thereafter.
33. To measure the impact of the work done, a social satisfaction social audit / impact assessment
study is carried out by a third party.
Partnerships
Collaborative partnerships are formed with the Government, the District Authorities, the village
panchayats, NGOs and other like-minded stakeholders. This helps widen the Company’s CSR
reach and leverage upon the collective expertise, wisdom and experience that these partnerships
bring to the table.
In collaboration with FICCI, we have set up Aditya Birla CSR Centre for Excellence to make
CSR an integral part of corporate culture.
The Company engages with well established and recognized programs and national platforms
such as the CII, FICCI, ASSOCHAM to name a few, given their commitment to inclusive
growth.
Budgets
A specific budget is allocated for CSR activities. This budget is project/programme driven.
Information dissemination
The Company’s engagement in this domain is disseminated on its website, Annual Reports, in
house journals and through the media.
Management Commitment
Our Board of Directors, our Management and all of our employees subscribe to the philosophy
of compassionate care. We believe and act on an ethos of generosity and compassion,
characterized by a willingness to build a society that works for everyone. This is the cornerstone
of our CSR policy.
2.11 Listing Information
Equity Shares
Bombay Stock Exchange Limited Phiroze Jeejeebhoy Towers Dalal Street, Mumbai 400 001
National Stock Exchange of India Ltd Exchange Plaza, Bandra-Kurla Complex Bandra (East),
Mumbai 400 051
34. Stock code
BSE SCRIP
ID
BSE SCRIP
CODE
NSE
Symbol
Reuters
Bombay Stock Exchange
Limited
IDEA 532822 IDEA.BO
National Stock Exchange of
India Limited
- - IDEA IDEA.NS
2.12 Top Competitors:
1. Airtel:
Incorporated on July 7, 1995, Bharti Airtel Ltd is a division of Bharti Enterprises. The
businesses of Bharti Airtel are structured into two main strategic groups - Mobility and
Infotel. The Mobility business provides GSM mobile services in all 23
telecommunications circles in India, while the Infotel business group provides telephone
services and Internet access over DSL in 15 circles. The company complements its
mobile, broadband, and telephone services with national and international long-distance
services. The company also has a submarine cable landing station at Chennai, which
connects the submarine cable connecting Chennai and Singapore. Bharti Tele-Ventures
provides end-to-end data and enterprise services to corporate customers by leveraging its
nationwide fibre- optic backbone, last mile connectivity in fixed-line and mobile circles,
VSATs, ISP and international bandwidth access through the gateways and landing station.
2. Vodafone:
Vodafone Group Plc (Vodafone) is a mobile communications company. The Company
provides its services to mobile voice, messaging, data and fixed line. Vodafone has equity
interests in telecommunications operations in nearly 30 countries and around 50 partner
networks worldwide. Vodafone Red offers consumers and businesses a package with
mobile data allowances, unlimited calls and texts, plus cloud and back-up services to
secure personal data. Vodafone Cloud allows customers to store their personal digital
content, such as contacts, photos and videos in the Vodafone network and to access it on
the move from any connected device. Vodafone OneNet integrates landlines and mobiles
providing a communication solution. Vodafone Secure Device Manager gives customer a
way to manage many of their smart devices. In February 2014, Verizon Communications
35. Inc completed the acquisition of Vodafone Group Plc's 45% indirect interest in Verizon
Wireless.
3. Reliance:
Reliance Communications Limited is the flagship Company of Reliance Group. The
Company is an integrated telecommunications service provider. The Company together
with its subsidiaries offers a chain of wireless (Code Division Multiple Access (CDMA)
and Global System for Mobile (GSM), including third generation (3G) services),
wireline, national long distance, international, voice, data, video, direct-to-home (DTH)
and Internet based communications services under various business units organized into
customer facing business segments: wireless, global and broadband. The Company also
owns through its subsidiaries, a global submarine cable network infrastructure and offers
managed services, managed Ethernet and application delivery services.
4. Aircel:
Aircel is an Indian mobile network operator headquartered in Chennai, which offers
voice & data services ranging from postpaid and prepaid plans, 2G and 3G services,
Broadband Wireless Access (BWA), Long Term Evolution (LTE) to Value-Added-
Services (VAS). In 2006, Aircel was acquired by Malaysia’s biggest integrated
communications service provider Maxis (Maxis Communication Berhard) and is a joint
venture with Sindya Securities & Investments Pvt Ltd - Maxis holds 74% equity in the
company. Aircel commenced operations in 1999 by Chinnakannan Sivasankaran and
today is the leading mobile operator in Tamil Nadu, Assam, North-East India and
Chennai. It is India’s fifth largest GSM mobile service provider and seventh largest
mobile service provider (both GSM and CDMA) with a subscriber base of over 65.1
million. It has a market share of 7.33% among wireless operators (includes GSM,
CDMA, and FWP operators) in the country. Aircel has also obtained permission from the
Department of Telecommunication (DoT) to provide International Long Distance (ILD)
and National Long Distance (NLD) telephony services. It also has the largest service
in Tamil Nadu.
5. Uninor:
Telewings Communications, (operating under the brand name of Uninor) is an Indian
mobile network operator based in Gurgaon, India. The company is a subsidiary
of Telenor Group, a telecommunications company headquartered in Oslo, Norway, and
Telenor currently owns 74% of the stake in Telewings Communications. Telewings
offers mobile voice and data services based on the GSM technology. Uninor services are
commercially available in 6 circles, covering a population footprint of 600 million
people. Uninor serves more than 3
36. crore customers in the states of Uttar Pradesh, Uttarkhand, Bihar, Jharkhand,
Maharashtra, Goa, Gujarat and Andhra Pradesh. The mobile service provider targets
youth and other communities within the Indian mass market. In recent Spectrum auctions
Uninor secured fresh spectrum in 4 of its existing circles and in a new circle of Assam.
6. BSNL
BHARAT SANCHAR NIGAM LIMITED (BSNL). It is fourth largest department of
Telecommunication Company in Asia and seventh in world today. This is one of the most
earning revenue in India. Above more than 3 lacks employees, officer and engineers
working in BSNL at present. These manual telephone exchanges suffered from some
disadvantages. To overcome this automatic exchange was introduced in this system. In
1980’s PITHROTHA LTD. Introduced “C-DOT” exchange in India. These exchanges
replaced by electro mechanical exchange. Now it is “WLL” & “GSM” mobiles which is
also proved a mild stone in Telecommunication sector. It was 31st march 2002 when
BSNL started these GSM mobile and today it has provided almost 35 lacks mobiles in all
over country. WLL system which is also a mobile with limited mobility in city & can
have Tele communication facility in that area almost. While GSM can cover all cities of
the country.
7. MTNL
Mahanagar Telephone Nigam Limited (MTNL) is a state-owned telecommunications
service provider in the metro cities of Mumbai and New Delhi in India and in the island
nation of Mauritius in Africa. The company had a monopoly in Mumbai and Delhi until
1992, when the telecom sector was opened to other service providers. "Transparency
makes us different" is the motto of the company. The Government currently holds 100%
stake in the company. In recent years, MTNL has been losing revenue and market share
heavily due immense competition in the Indian telecom sector.
38. 2.14 Recent News and media:
Idea Cellular Biggest Gainer From Number Portability: Kotak,Indo-Asian News
Service , 13 April 2016: Idea Cellular has emerged as the biggest gainer of the mobile
number portability (MNP) scheme in the last five years, Kotak Institutional Equities said
here on Wednesday in a five-year scorecard.
Idea Partners Nokia for 4G LTE Services Rollout in 3 Circles: Indo-Asian News
Service , 11 April 2016: Idea Cellular has selected Nokia to provide the technology for its
4G LTE rollout in three of its key regional circles Kerala, Andhra Pradesh and Haryana, a
company statement said in New Delhi on Monday.
Idea Cellular Calls Off Rs 3,310 Crore Spectrum Deal With Videocon: NDTV Profit
Team | Last Updated: March 17, 2016 09:43 (IST): Idea Cellular, India's third-biggest
mobile phone operator, said it has called off its plan to buy spectrum worth Rs 3,310
crore from rival Videocon Telecommunications.
Idea Cellular Launches 4G LTE Services in the North East: Agencies , 9 March 2016:
Telecom major Idea Cellular on Tuesday announced entry of its 4G LTE service in the
North East, with the launch of the high-speed service in Dimapur.
Idea Launches 4G Services in Chennai: Gadgets 360 Staff , 15 February 2016: Idea
Cellular on Monday announced the expansion of its high speed 4G LTE (1800MHz FDD-
LTE Band 3) services to across 29 towns of Tamil Nadu, including Chennai. The telecom
operator said that within two months, it has expanded its 4G LTE service footprint to 20
districts, including towns such as Chennai, Madurai, Trichy, Salem, Tirunelveli, Vellore,
Erode, and Tirupur.
Idea Cellular Launches 4G Services in Odisha: Press Trust of India , 3 February 2016:
Telecom operator Idea Cellular Tuesday launched its 4G mobile services in 12 major
towns of Odisha. Among the 12 major towns being covered with Idea's 4G are
Bhubaneswar, Cuttack, Baleswar, Jharsuguda, Jatni and Khurda, the company said in a
statement.
Idea Expands 4G Services to 39 Towns in Karnataka: Press Trust of India , 29 January
2016: With rapid expansion, Idea will launch 4G service in Mangaluru, Udupi-Manipal,
Vijayapura, Ballari and 18 more towns by end of the fiscal, taking the total tally to 61.
Idea Launches 4G Services Ahead of Reliance Jio Launch: NDTV Profit Team | Last
Updated: December 24, 2015 15:47 (IST): Idea Cellular on Wednesday became the third
mobile operator to launch 4G services after Bharti Airtel and Vodafone India. The 4G
launch by country's third-biggest mobile phone operator comes ahead of rival Mukesh
Ambani-controlled Reliance Jio's much publicized country-wide rollout of 4G services
later this fiscal year.
Angry Birds Maker Rovio Partners With Idea Cellular for Carrier Billing, 6 November
2015: Rovio has partnered with Idea Cellular to enable carrier billing on its Angry Birds
games. It is the Finnish company's first carrier billing deal ever. Idea will allow
customers to pay for in-game transactions via their prepaid or postpaid accounts. The
reason for the move is to combat low credit card usage in the country.
39. Idea Gets Shareholders Nod to Raise up to Rs 10,000 Crore: Press Trust of India | Last
Updated: September 29, 2015 22:28 (IST): Idea Cellular on Tuesday said its shareholders
have approved to raise up to Rs 10,000 crore through issue of non-convertible securities
on private placement basis in one or more tranches.
2.15 Awards and Recognitions:
It received the 'CARE' service in the 'Best Billing or Customer Care Solution' award at
the GSM Association Awards in Barcelona, Spain
Idea Cellular won an award for the 'Bill Flash' service at GSM Association Awards in
Barcelona, Spain.
Idea is the winner of ‘The Emerging Company of the Year Award’ at The Economic
Times Corporate Excellence Awards 2009.
IDEA Cellular also received the prestigious Avaya Global Connect Award for being the
‘Most Customer Responsive Company’ in the Telecom sector in the year 2010.
It won the GSM Association Award for ‘Best Billing and Customer Care Solution’ for 2
consecutive years. It was awarded ‘Mobile Operator of the Year Award – India’ for
2007and 2008 at the Annual Asian Mobile News Awards.
41. Deferred Tax
Assets /
Liabilities
1,609.08 1,531.05 5.10%
Other Long
Term Liabilities
632.07 970.24 -34.85%
Long Term
Trade Payables
542.83 427.03 27.12%
Long Term
Provisions
282.07 216.71 30.16%
Total Non-
Current
Liabilities
19,072.52 20,288.90 -6.00%
Current
Liabilities
Trade Payables 2,970.18 2,634.37 12.75%
Other Current
Liabilities
13,292.74 4,684.87 183.74%
Short Term
Borrowings
151.39 609.36 -75.16%
42. Short Term
Provisions
1,181.99 708.13 66.92%
Total Current
Liabilities
17,596.30 8,636.72 103.74%
Total Liabilities 58,558.97 44,509.98 31.56%
ASSETS
Non-Current
Assets
0.00 0.00 0.00%
Gross Block 55,843.26 45,279.12 23.33%
Less:
Accumulated
Depreciation
23,729.35 19,255.00 23.24%
Less:
Impairment of
Assets
0.00 0.00 0.00%
Net Block 32,113.91 26,024.12 23.40%
Lease
Adjustment A/c
0.00 0.00 0.00%
43. Capital Work in
Progress
5,079.45 11,380.12 -55.37%
Intangible assets
under
development
0.00 0.00 0.00%
Pre-operative
Expenses
pending
0.00 0.00 0.00%
Assets in transit 0.00 0.00 0.00%
Non Current
Investments
1,646.61 1,641.21 0.33%
Long Term
Loans &
Advances
3,890.67 2,829.23 37.52%
Other Non
Current Assets
0.00 0.00 0.00%
Total Non-
Current Assets
42,730.63 41,874.67 2.04%
Current Assets
44. Loans &
Advances
Currents
Investments
11,167.50 0.00 100.00%
Inventories 58.30 48.74 19.62%
Sundry Debtors 932.19 769.69 21.11%
Cash and Bank 1,541.94 139.53 1005.08%
Other Current
Assets
418.98 336.31 24.58%
Short Term
Loans and
Advances
1,709.43 1,341.03 27.47%
Total Current
Assets
15,828.34 2,635.30 500.63%
Net Current
Assets
(Including
Current
Investments)
-1,767.97 -6,001.42 -70.54%
45. Total Current
Assets
Excluding
Current
Investments
4,660.84 2,635.30 76.86%
Miscellaneous
Expenses not
written off
0.00 0.00 0.00%
Total Assets 58,558.97 44,509.98 31.56%
Contingent
Liabilities
10,720.29 5,063.68 111.71%
Total Debt 25,875.42 19,361.65 33.64%
Book Value (in
₹)
60.72 46.90 29.48%
Adjusted Book
Value (in ₹)
60.72 46.90 29.48%
47. Employee Cost 1,358.73 1,161.01 17.03%
Other
Manufacturing
Expenses
14,356.34 12,520.10 14.67%
General and
Administration
Expenses
323.42 283.22 14.19%
Selling and
Distribution
Expenses
2,847.75 2,404.55 18.43%
Miscellaneous
Expenses
256.91 243.70 5.42%
Expenses
Capitalised
0.00 0.00 0.00%
Total Expenditure 21,591.12 18,896.27 14.26%
PBIDT (Excl OI) 9,688.36 7,283.20 33.02%
Other Income 452.34 236.69 91.11%
Operating Profit 10,140.69 7,519.89 34.85%
48. Interest 946.60 821.37 15.25%
PBDT 9,194.09 6,698.53 37.26%
Depreciation 4,855.01 4,093.24 18.61%
Profit Before
Taxation &
Exceptional Items
4,339.08 2,605.28 66.55%
Exceptional
Income /
Expenses
0.00 0.00 0.00%
Profit Before Tax 4,339.08 2,605.28 66.55%
Provision for Tax 1,529.25 915.98 66.95%
PAT 2,809.84 1,689.31 66.33%
Extraordinary
Items
0.00 0.00 0.00%
Adj to Profit After
Tax
0.00 0.00 0.00%
49. Profit Balance B/F 3,236.73 1,717.38 88.47%
Appropriations 6,046.57 3,406.68 77.49%
Equity Dividend
(%)
6.00 4.00 50.00%
Earnings Per
Share (in ₹)
7.81 5.09 53.47%
Book Value (in ₹) 60.72 46.90 29.48%
CASH FLOW:
Parameter MAR'15
(₹ Cr.)
MAR'14
(₹ Cr.)
Change
%
Net Profit Before
Taxes
2,809.84
1,689.3
1
66.33%
Adjustments for
Expenses &
Provisions
7,061.02
5,662.6
3
24.70%
Adjustments for 562.80 713.08 -21.07%
50. Liabilities & Assets
Cash Flow from
operating activities
9,474.39
7,531.1
2
25.80%
Cash Flow from
investing activities
-
5,405.45
-
6,300.0
5
14.20%
Cash Flow from
financing activities
8,544.38
-
2,181.1
2
491.74%
Effect of exchange
fluctuation on
translation reserve
0.00 0.00 0.00%
Net
increase/(decreas
e) in cash and
cash equivalents
12,613.3
1
-950.05 1427.65%
Opening Cash &
Cash Equivalents
90.78
1,040.8
3
-91.28%
Cash & Cash
Equivalent on
0.00 0.00 0.00%
51. Amalgamation /
Take over /
Merger
Cash & Cash
Equivalent of
Subsidiaries under
liquidations
0.00 0.00 0.00%
Translation
adjustment on
reserves / op cash
balances from
subsidiaries
0.00 0.00 0.00%
Effect of Foreign
Exchange
Fluctuations
0.00 0.00 0.00%
Closing Cash &
Cash Equivalent
12,704.0
9
90.78
13894.22
%
52. 3. Service Delivery:
A service delivery framework (SDF) is a set of principles, standards, policies and constraints
used to guide the design, development, deployment, operation and retirement of services
delivered by a service provider with a view to offering a consistent service experience to a
specific user community in a specific business context.[further explanation needed]An SDF is
the context in which a service provider's capabilities are arranged into services.
The term service delivery framework (SDF) has been used interchangeably with the term service
delivery platform (SDP), which is a set of technology components that provide capabilities. An
SDF governs and guides the use of SDP capabilities.
Service delivery is a component of business that defines the interaction between providers and
clients where the provider offers a service, whether that be information or a task, and the client
either finds value or loses value as a result. Good service delivery provides clients with an
increase in value.
In Idea, the telecom customers’ problems- however big or petty- is always addressed to and
taken care off. Be the customers corporate clients, premium segment customers or low ARPU
customers, their needs and problem solving is always our topmost priority. We also tap
customers to avail packs and plans as per the latest offers matching their usage pattern as per our
records.
3.1 Customer Interaction Management:
This is a part of Service Delivery and it is abbreviated as CIM. The functions of this department
is to check with all the teams responsible for prompt functioning of the services, like- Response
and Resolution, Data Mining, Management Information System(MIS), IVR, back office
operations, Information Technology, Appellate and DND, whenever a QRC (Query, Request,
Complaint) enters the system software through user interaction regarding Idea services.
The customers are informed when his/her problem or question has been mended or answered
after the due actions are taken to solve it and the process goes on.
3.1.1 Appellate and DND:
This is a part of CIM where all the problems of the customers are notified, checked for solutions,
mended and finally reverted with an answer to the customers. I have been in charge of this post
alone, for the head office of Idea Cellular, Gujarat located in Ahmedabad.
My duty was to first check the mails that came from the customers. Sometimes there would also
be tele-callers. These calls or emails were then read and divided into three broad categories-
Queries, Requests or Complaints. There were mails from both Prepaid and Postpaid customers.
53. However, the momentum and ratio of calls or mails received from Postpaid customers was much
higher than that from the Prepaid customers.
3.1.1.1 Types of QRC by customers:
After the division has been made, next on the work list was to understand the exact need or cause
of problem for the customers.
Many a times, the customers would write a complaint that need not be addressed to Idea Cellular
at all, as that might be the lookout of other Telecom operators. Maximum such cases would turn
up during Port In requests to Idea. Such cases would be handled in a certain manner.
Again there were cases of call drop complaints. If there is network problem prevailing in a
certain region, our call centers would be providing us that information immediately. So in case
we get to know that there are network connectivity issues prevailing, we assure the customer that
call drop rates will reduce within a certain time limit and provide them the TAT.
There would also be customers complaining about plan change done by the company without
informing them. We inform them that they either had been already informed about it earlier by
some medium or the other or, we explain to them the genuine reason that the license for that
particular plan that the customer had been using since the previous few years, has elapsed and
hence, by default, the company has offered them a similar plan which has been revised.
We have also addressed queries of customers regarding their data packs and plans of both 2G
and 3G. Quite soon we will be addressing to customers with 4G services as well.
Customer
Interaction
Query Request Complaint
54. There are also cases where the customers enquire about balance and we tell the pending amount
or the unbilled amount in case of high billing of Post paid customers.
Complaints regarding billing disputes in case of Post paid customers are also common. In that
case we check our records and transfer the information to the related team and solve the
customers’ problem and even refund them if the need arises, as soon as possible.
3.1.1.2 DND and VAS:
Customers often request for VAS (Value Added Services) like Bollywood News, Fashion news,
Sports news, Ringtone and Dialer Tone or Ring Back Tone (RBT) activations. We immediately
adhere to their needs by subscribing to the requested VAS service. Likewise, customers can also
draft a request for unsubscribing to a specific service.
There are also cases when the customer wishes not to get the promotional offer information via
SMS, MMS or voice calls and emails. In that case, we activate DND. Again, the DND services
might be fully blocked, partially blocked or customized, according to the user request. Some
users would not like to receive any kind of offer news, so we DND mode is fully blocked for
them. Some customers want information regarding just sports or just investment and banking
sector news; for them it is a partially blocked DND mode.
3.1.1.3 Classification of customers in SD:
Customers
Prepaid
General
Service
Plus
Postpaid
General
Service
Plus
55. It is our duty to address all our customers’ problems on time and we do so but it will really be
unfair on the customers’ part if despite of their different usage habits, they all receive the same
treatment during getting services. That is why, customers are treated differently.
A service plus customer is a premium customer for Idea who has been utilizing the services of
this company since long or has been helping the company yield higher ARPU- Average Rate per
Usage by increasing the MoU-Minutes of Usage. Again within it there are three categories:
Platinum, Gold and Silver. Platinum customers are of premium most importance and they help
Idea with highest revenue generation and hence their calls are never barred, they are provided
with extra facilities as per requirement and lots of freebies. Then follows the Gold customers
with similar call history or profuse data usage records and they are also the premium segment
customers whose calls are never barred and outstanding amount is allowed up to high limits. The
Silver customers come third and they also enjoy special discounts on call rates, calls never
getting barred, and specially created offers for them and queries getting answered and requests or
complaints resolved faster than the general category customers.
However, that does not mean that general customers with low MoU and ARPU are not taken
care of. Their complaint handling procedure is also done within the specific time or TAT
provided to customers. Many regional and special offers are offered to them as well based on
their circle of usage and usage history as per the company records.
Platinum
SilverGold
56. 3.1.1.4 Software used and terminologies:
At Idea, in the Appellate and DND desk, the Crystal software is generally used to look into
customer database and retrieve the necessary information to further address the customers
regarding the problems and queries. Crystal has both Post paid (Siebel Communications) and Pre
paid window. Here, all the customer information is stored- right from the demographics, usage
history, handset and IMEI, SIM status, connectivity issues, billing information, pack or plan
being currently used or used by the customer in past and even the name and all the above history
of a customer using that SIM number prior to the current user can be known.
The standard mail used by Idea Cellular is Microsoft Outlook and all incoming and outgoing
mails to customers or within the organization, to communicate between teams or different offices
and zonal circles are done through it.
The main portal for all employees to update any information about their health, avail leaves,
apply for vacations, booking flights, claiming reimbursements, availing free offers exclusively
for ABG group Idea Cellular employees is done through POORNATA.
Insight is again another web page containing all information about the latest inside news about
the company’s latest deals being signed, offers and bundled packs being released to entertain the
customers, etc. Every employee regards it as their Bible of reference, when it comes to customer
handling.
Ultimately, My Space is the mother of all these pages. My Space can be accessed by all idea
employees in any circle across the country. Any news of any circle can be read through it. There
are also online recreation facilities for employees here, like they can read magazines, e-books,
etc.
Here is a list of terminologies used in Idea on a daily basis:
ARPU- Average Rate Per Usage
MoU- Minutes of Usage
CLIP: Caller-Line Identification Presentation
AON: Activity On Node
COCP: Company Owned, Company Paid
IOIP: Individual Owned, Individual Paid
HLR: Home Resource Locator
STV: Special Tariff Voucher
57. TAT: Turn Around Time
RNR: Response and Resolution
U&R: Usage and Revenue
CUG: Closed User Group
DHD: Distributor Help Desk
RHD: Retailer Help Desk
SPA: Service Provisioning and Activation
IVR: Interactive Voice Recording
BPC: Bill Plan Change
TV: Tele-Verification
58. 4. Findings and Suggestions:
4.1Findings:
Idea Cellular Ltd. is devoted to serving the best of services to retain and keep its
customers happy.
Though the Prepaid customers are many times more than its Post-paid customers,
ultimately high profits are rendered from the usage of the latter.
Service Plus customers are never barred from making calls and are allowed to pay due
amount even after due date. Their ARPU, MoU and AON are high.
Call drop and connectivity problems prevail.
There are not enough 4G LTE customers of Idea till date.
Idea Cellular Ltd. is the number one gainer from its Mobile Number Portability services.
The R&R team and Appellate Desk take care of the consumer complaints.
Customer queries, requests and complaints registering procedure can start anytime
between him/her acquiring the SIM/number and leaving using Idea services, after
discontinuing using Idea services and even before taking up Idea services.
DND mode can be selectively blocked.
A customer is granted both generic offers as well as segmented offers.
59. 4.2 Suggestions:
Idea Cellular Ltd. should concentrate on establishing its towers at right places such that
communication barriers like call drop and network connectivity issues can be well
handled.
Idea should have an even better retention team to hold on to its customers.
Idea should see to it such that customers do not receive promotional calls or SMS even
after they have set their DND mode fully blocked.
Idea can come up with better schemes and pack for its customers using 4G so as to
capture the market faster than its competitors.
Improvising on the QRC handling procedure can help Idea become even bigger and
favourable name amongst its customers.
60. 5. Conclusion:
Idea Cellular Ltd., a part of the Aditya Birla Group of companies, has come a long way in its
journey of telecommunication services. It has been growing bigger and better with days and
has been already gaining power over its competitors including names of Telecom giants like
Airtel and Vodaphone.
Idea has been recently told to be the biggest gainer from Mobile Number Portability services,
leaving its competitors behind. Idea is favorable to customers because of the attractive
schemes and offers it provides to them than the rival companies. It should however also
inform its retention team to focus more on retaining customers by providing such schemes
and offers such that churn does not happen.
Idea has recently launched its 4G services across various towns, cities and states in India and
plans to successfully launch it across the major destinations by end of 2016. Customers are
on the rise for this network service. With its attractive offers and creative packs, Idea is
expected to lead the 4G market over the next few years.
Idea has chosen its logo to be different and the color of it as clearly distinguishable from its
competitors who mostly have chosen the color red. This yellow color has helped Idea make
its mark in customers’ minds and has given it an instant recognition in the market. All the
customer touch points which are broadly categorized into three- My Idea Showrooms, CRS
and Idea Points have to use their signature color and designs for their stores so that the stores
can be easily identified by customers.
As long as Idea continues to serve its customers with this kind of premium service from the
service delivery team, the networks team, the IT team and all the other teams as a whole, the
company will continue to prosper and have bright future in the telecommunications sector.
