Idea Cellular, established in 1985 and part of the Aditya Birla Group, is India's third-largest telecom provider with 191 million subscribers as of 2016 and a key player in 2G, 3G, and 4G services. The company emphasizes values like integrity, commitment, and seamlessness, while navigating regulatory changes and a booming economy in India's competitive telecom market. Future plans include expanding digital services such as payments and content, while maintaining a focus on employee meritocracy and customer satisfaction.

1. I d e a
Group 10
• Aaron- PGP07001
• Arvind- PGP07016
• Lalith- PGP07026
• Mayukh- PGP07028
• Meraj- PGP07029

2. Introduction
• Founded in 1985 by Aditya Birla Group, AT&T Wireless & Tata
Group
• Headquartered at Mumbai, Maharashtra
• Third largest telecom provider in India with 191 million
subscribers
• Offers 2G,3G & 4G services pan-India
• As of 2016 end, had revenues of Rupees 354 billion
• After paying around $860 million in 2010’s 3G spectrum auction,
Idea launched it’s 3G service in 2011
• As of 31 Mar, 2016, Idea Cellular offers it’s services in 13
telecom service circles in it’s own spectrum
• Talks of possible merger with Vodafone India Ltd. doing the
rounds in 2017

3. 3Values
01 02
Integrity:
Honesty in Every
Action
Passion:
Energized Action
03
Option 03
Commitment:
Deliver on the
Promise
C
04 05
Seamlessness:
Without
Boundaries in
Letter & Spirit
Speed: One Step
Ahead Always
Company’s Mission
Idea mission: “We will Delight our Customers while meeting their individual communication needs anytime
anywhere”

4. 4Macro
Scenario
Political: TRAI and the
Indian government have
approved of many policies in
recent times such as
Spectrum Trading, Spectrum
Sharing and Active
Infrastructure Sharing. The
ceiling on roaming charges
and Interconnection Usage
Charges have been reduced
Economic: Other than the
Demonetization effect that
was almost negligent up to
now considering the current
GDP report. India is a
booming economy.
Social: On the customer
front, India is the second
largest wireless market in
the world in terms of new
subscriber additions. The
total subscriber base has
crossed 1 Billion during
2015-16 and stood at 1.05
Billion as of September 2016
Technological: Spectrum
access is becoming a
commodity and the services
provided by the incumbent
operator are the game
changer
Environmental &
Legal-India has one of the
most stringent EMF
exposure norms in the world.
In the case of non-
compliance of EMF
standards, a penalty of Rs. 5
lakh is imposed per BTS per
Service Provider.

5. 5Rivalry in Indian
Telecom
Industry
Threat of new
entrants: LowT
Bargaining power
of buyers: HighB
Threat of rival
products/services:
Moderate to High
T
Bargaining power
of sellers: Low to
moderate
B

6. 6Competencies of Idea
Spectrum-
Sustained
advantage
Fibre Optic
network- Long
term point of
parity
Tower
Infrastructure-
Competitive
Parity
Idea Power
brand- Sustained
advantage

7. Strengths
o
o
o
o
M&A with
Vodafone

8. Weaknesses
o
o
o
o
o

9. Opportunities
o
o
o
o

10. Threats
o
o
o
o

11. HR
Strategies
• Idea Cellular had a total employee count of 91500. 325 employees above 60 had quit between 2011 and
2016 and 400 young employees were hired in their place
• Aditya Birla Group’s in house recruitment policies went under change. Professionals from other companies
were hired in the management team to help bring about the change
• 360-degree appraisal: This was introduced in 1999. It permitted managers to raise questions over his
leadership style, managerial ability and also personal traits but he could not define what he expected from
his employees. After the feedback, he issued each senior manager a six page letter mentioning the areas of
improvement and his expectations.
• In 1999 KM Birla launched the Aditya Birla scholarship to promote excellence among student community to
cultivate the leaders of tomorrow.
• Aditya Birla awards were launched in 1999 where team achievements were recognized every year
• Organizational health survey which measured the “Happiness at work” index was introduced. This was used
as a parameter to track employee happiness.
• Previously the hierarchy in the company was decided upon seniority instead of merit. He decided to
implement performance management systems, reviewed compensations and accentuated on training to
bring meritocracy. Mr. KM Birla personally led the recruitment program from business schools.

12. 12Idea &
advertising
Line of Ads by Idea
Cellular

13. 13Future
Technologies
2017:
• Idea Music
• Idea Games
• Idea Videos
2018:
• Idea TV
• Idea News &
Mags
• Idea Storage
In progress
• Idea chat
• Idea Money

14. 14Idea and
competition
Competition
product
comparison chart

15. Distribution
and Servicing
Model
# 1.6 million
Transacting
Retailer
# 1 million Data
Selling O/Ls
#
8,000+ Idea
Service stores
across formats
#
15,500+ agents, 33
call centers across
India
#
Mobile app for 24*7
customer support
definitely
#
33,000+
Distributors,
54,000+ DSEs
#
Digital sales&
services
# CUGs

16. 16
Developments
in Idea digital
wallets and
payment banks
Payment Bank:
• Mobiles being used to pay for goods,
services, digital content, P2P
transfers at physical (PoS) or remote
(internet transactions) locations
• Offer financial products such as
savings account, micro loans,
insurance, etc. to a large segment of
Indians who have remain deprived of
such services so far
• Mainly targets Urban/Semi-
Urban/Rural (SEC B,C & D) unbanked
consumers who use mobile phones
• Aditya Birla Nuvo Limited (ABNL) got
In-principle approval from RBI for
Payments Bank. Idea holds 49%
stake in a Joint venture with ABNL
named Aditya Birla Idea Payments
Bank (ABIPB).
Digital Wallets:
• Primarily Urban (SEC A)
consumer, uses smartphone
(data user) and Active
banking user
• Key use cases: Mobile/DTH
recharges, Utility Bill
payments, Payments across
E-commerce, Merchants, Taxi
Aggregators, Travel portals
(IRCTC), Availing Coupons
• Idea Digital Wallets – 2.05 Mn
(EoP March ‘16)

17. 17Market
Composition
Distribution
Vodafone Bharti Idea Aircel
Reliance (GSM) Reliance (CDMA) Tata (GSM) Tata (CDMA)
BSNL (GSM) BSNL (CDMA) MTNL (GSM) Reliance Jio
Broadband service distribution
Bharti Vodafone Idea BSNL Reliance Others
Vodafone 200,721,247
Bharti 259,940,666
Idea 178,816,338
Aircel 90,140,979
Reliance (GSM) 87,159,985
Reliance (CDMA) Data Not Available
Tata (GSM) 47,658,059
Tata (CDMA) 9,395,721
BSNL (GSM) 92,909,555
BSNL (CDMA) 8,55,799
MTNL (GSM) 3,612,727
Reliance Jio 15,979,745

18. 18KEY PERFORMANCE INDICATORS (KPIs)

19. 19KEY PERFORMANCE INDICATORS (KPIs)

20. 20KEY PERFORMANCE INDICATORS (KPIs)

21. 21KEY PERFORMANCE INDICATORS (KPIs)

22. 22QUALITY OF
SERVICE
QoS Benchmarks for 3G
Wireless Service Providers:
• Network Availability:
• BTSs and Node-B's
Accumulated downtime (not
available for service) (%age)
downtime (not available for
service) (%age) ≤ 2%
• Worst affected Node B's due to
downtime (%age) ≤ 2%
• Connection Maintenance
(Retainability):
• Worst affected cells having
more than 3% Circuit Switched
Voice Drop Rate ≤ 3%
• Point of Interconnection (POI)
Congestion ≤ 0.5%
QoS Benchmarks for
2G Wireless Service
Providers
• Network Availability:
• BTSs Accumulated
downtime (not available for
service) (%age) ≤ 2%
• Worst affected BTSs due to
downtime (%age) ≤ 2%
• Connection Establishment
(Accessibility):
• Call Set-up Success Rate
(within licensee's own
network) ≥ 95%
• SDCCH/ Paging Chl.
Congestion (%age) ≤ 1%
• TCH Congestion (%age) ≤
2%

23. 23QUALITY OF
SERVICE
QoS Benchmarks for 2G Wireless
Service Providers
• Connection Maintenance (Retainability):
• Worst affected cells having more than 3%
TCH drop (call drop) rate (%age) ≤ 3%
• Connection with good voice quality ≥ 95%
• Point of Interconnection (POI) Congestion (No. of
POIs not meeting the benchmark)
• (Averaged over a period of quarter ) ≤ 0.5%
IDEA Kerala 1 Maharashtra 1 Mumbai 1 UP E 1
QoS Benchmarks for
2G Wireless Service
Providers
• Metering and Billing:
• Metering and billing
credibility - post paid ≤ 0.1%
IDEA UP W 0.11
• Metering and billing
credibility - pre paid ≤ 0.1%
IDEA Andhra Pradesh 0.26
North East 0.12
Rajasthan 0.18
• Resolution of
billing/charging complaints
• 98% within 4 weeks
• 100% within 6 weeks
QoS Benchmarks for
2G Wireless Service
Providers
• Response time to Customer for
Assistance:
• Accessibility of call center/
customer care ≥ 95%
• Percentage of calls
answered by the operators
(voice to voice) within 90
seconds ≥ 95%
• Termination/Closure of Service:
• %age requests for
Termination / Closure of
service complied within 7
days (100% within 7 days)
IDEA Kolkata 99.96
• Time taken for refund of
deposits after closures
(100% within 60 days)
IDEA Haryana 99.91

24. Credit
Analysis Test
Altman
Test
• Z-Score = 1.2A + 1.4B + 3.3C + 0.6D +
1.0E
• Where:
• A = working capital / total assets
• B = retained earnings / total assets
• C = earnings before interest and tax /
total assets
• D = market value of equity / total
liabilities
• E = sales / total assets
• this score is 4.41.
• it means company is strongly
positioned and robustly healthy.

25. Credit
Analysis Test
Piotroski
Test
• 9 criteria are considered; 0 for unfavorable
and 1 for favorable
• Positive return on assets in the current year
(1 point).
• Positive operating cash flow in the current
year (1 point).
• Higher return on assets (ROA) in the
current period compared to the ROA in the
previous year (1 point).
• Cash flow from operations are greater than
ROA (1 point)
• Leverage, Liquidity and Source of Funds
• Lower ratio of long term debt to in the
current period compared value in the
previous year (1 point).
• Higher current ratio this year compared to
the previous year (1 point).
• No new shares were issued in the last year
(1 point).
• Operating Efficiency
• A higher gross margin compared to the
previous year (1 point).
• A higher asset turnover ratio compared to
the previous year (1 point).
Idea’s Piotroski score is three, implies strength of company’s stock is average.

26. Thank You