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  1. 1. INTRODUCTIONThe telecom services have been recognized the world-over as animportant tool for socio-economic development for a nation. It isone of the prime support services needed for rapid growth and
  2. 2. modernization of various sectors of the economy. Indiantelecommunication sector has undergone a major process oftransformation through significant policy reforms, particularlybeginning with the announcement of NTP 1994 and wassubsequently re-emphasized and carried forward under NTP1999. Driven by various policy initiatives, the Indian telecomsector witnessed a complete transformation in the last decade. Ithas achieved a phenomenal growth during the last few years andis poised to take a big leap in the future also.The Indian Telecommunications network with 621 millionconnections (as on March 2010) is the third largest in the world.The sector is growing at a speed of 45% during the recent years.This rapid growth is possible due to various proactive andpositive decisions of the Government and contribution of bothby the public and the private sectors. The rapid strides in thetelecom sector have been facilitated by liberal policies of theGovernment that provides easy market access for telecomequipment and a fair regulatory framework for offering telecomservices to the Indian consumers at affordable prices. Presently,all the telecom services have been opened for privateparticipation. TELESERVICES LTD.
  3. 3. Type Public (BSE: 532371)Industry TelecommunicationsFounded 1996 Mumbai, Maharashtra,Headquarters India Kishor Anant ChaukarKey people (Chairman) Narasimhan Srinat (Managing Director) Fixed-line and mobile telephony, broadband and fixed-line internetProducts services, digital television and network servicesRevenue 31.91 billion
  4. 4. (US$580.76 million) (2011)Parent Tata Group Tata DoCoMo (CDMA/GSM)VirginDivisions Mobile India (CDMA/GSM)Communications is among the Tata Groups larger investments, withover $7.5 billion already committed. The Groups objective is to provideend-to-end telecommunications solutions for business and residentialcustomers across the nation and internationally. The Groupscommunications activities are currently spread primarily over fourcompanies-Tata Teleservices Limited, its associate Tata Teleservices(Maharashtra) Limited, Tata Communications (erstwhile VSNL) andTata Sky. Together, these companies cover the full range ofcommunications services, including: Telephony Services: Fixed and Mobile Media & Entertainment Services: Satellite TV Data Services: Leased Lines, Managed Data Networks, IP/MPLS VPN, Dial-up Internet, Wi-Fi and Broadband Value-added Services: Mobile and Broadband Content/Applications, Calling Cards, Net Telephony and Managed Services Infrastructure Services: Submarine Cable Bandwidth, Terrestrial Fiber Network and Satellite Earth Stations and VSAT ConnectivityThe Tata Group includes over 100 companies, over 450,000 employeesworldwide and more than 3.8 million shareholders.
  5. 5. Incorporated in 1996, Tata Teleservices Limited was the pioneer of theCDMA 1x technology platform in India, embarking on a growth pathafter the acquisition of Hughes (India) Ltd [renamed TataTeleservices (Maharashtra) Limited] by the Tata Group in 2002. Overthe last few years, the company has launched significant services CDMAmobile operations in January 2005 under the brand name Tata Indicom,market-defining wireless mobile broadband services under the brandname Tata Photon in 2008 and 2G GSM services under the brand nameTata DOCOMO in 2009. AND GROWTH  Tata Teleservices intends to invest over Rs 100 crore every year in developing and marketing solutions for small and medium businesses.  The company has carved out a special business unit in order to give the desired degree of focus to this practice so that target the numerous SMB clusters in the country can be systematically targeted, according to Mr AG Rao, Executive President, Enterprise Business & Technology, Tata Teleservices.  TTSL provides both wireless and wireline products that assist SMBs with their voice and data needs.  It already had 20,000 SMB customers, many of whom prefer the „pay as you use and „build as you go model, said Mr Rao. By definition, many of the SME clusters are located in and around tier-two cities, be it Jalandhar (for sports goods), Nagpur (for powerloom and fabrication) or Coimbatore (machine tools).  Going forward, TTSLs plan is to collaborate with handset makers and tablet manufacturers to offer SMB customers customised handheld devices that can be used on the go, said Mr Rao.
  6. 6.  On the other hand, Tata Communications too is offering cloud- based computing infrastructure services in India, with plans to extend the services to other markets including the US, Europe, Singapore and South Africa.  “We see huge potential in the SMB space given that every unit is looking for improving productivity through efficient use of technology and telecom services. Tata Tele has already invested „a few hundred crores in the SMB business…going forward the endeavour is to invest „a few hundred crores every year,” Mr Rao told Business Line.  “We are in talks with handful of tablet makers and smartphone companies. We will also engage group companies Tata Communications and Tata Consultancy Services for this endeavour,” he added.The Directors have pleasure in presenting the 17th Annual Reporttogether with the audited financial statements of the Company for theyear ended March 31, 2012 and other accompanying reports, notes andcertificates.Financial ResultsThe financial results of the Companys operations during the year are
  7. 7. given below: (Rs. in Crores)Particulars 2011-12 2010-11Telecom Revenue 2,470.25 2,248.74Other Income35.44 67.20Profit on Sale of LongTerm Investment NIL 834.93Total Income 2,505.69 3,150.87Operation and OtherExpenses 1,945.36 1,818.52Provision for Contingencies 13.28 185.60 Earnings Before Interest,Depreciation, Tax 547.05 1,146.77and Amortisation (EBIDTA)Finance & TreasuryCharges(Net) 521.20 346.15Depreciation/ Amortisation 543.40 750.70Profit / (Loss) for the year (517.55) 49.90India has the second largest telecom network in the world after China. As on April 30, 2012, as per Telecom Regulatory Authority of India (TRAI), there were more than 952 million telephone connections in
  8. 8. the country of which 921 million were wireless connections and 31million were Wireline connections. Approximately 8-10 million mobileconnections (SIMs) are being added every month. The nationaltele-density is 78 per hundred.